TITLE 18. ENVIRONMENTAL QUALITY CHAPTER 2. …

NSR AMENDMENTS: STAKEHOLDER REVIEW DRAFT July 23, 2015

TITLE 18. ENVIRONMENTAL QUALITY

CHAPTER 2. DEPARTMENT OF ENVIRONMENTAL QUALITY AIR POLLUTION

CONTROL

ARTICLE 1. GENERAL

R18-2-101. Definitions R18-2-102. Incorporated Materials

ARTICLE 2. AMBIENT AIR QUALITY STANDARDS; AREA DESIGNATIONS; CLASSIFICATIONS

R18-2-201. Particulate Matter: PM10 and PM2.5 R18-2-202. Sulfur Oxides (Sulfur Dioxide) R18-2-203. Ozone: One-hour Standard and Eight-hour Average Standard R18-2-204. Carbon monoxide R18-2-205. Nitrogen Oxides (Nitrogen Dioxide) R18-2-206. Lead R18-2-210. Attainment, Nonattainment, and Unclassifiable Area Designations R18-2-215. Ambient air quality monitoring methods and procedures R18-2-216. Interpretation of Ambient Air Quality Standards and Evaluation of Air

Quality Data R18-2-217. Designation and Classification of Attainment Areas R18-2-218. Limitation of Pollutants in Classified Attainment Areas R18-2-219. Repealed R18-2-220. Air pollution emergency episodes

ARTICLE 3. PERMITS AND PERMIT REVISIONS

R18-2-301. Definitions R18-2-302. Applicability; Registration; Classes of Permits R18-2-302.01. Source Registration Requirements R18-2-303. Transition from Installation and Operating Permit Program to Unitary

Permit Program; Registration Transition; Minor NSR Transition R18-2-304. Permit Application Processing Procedures R18-2-306.01. Permits Containing Voluntarily Accepted Emission Limitations and

Standards R18-2-306.02. Establishment of an Emissions Cap R18-2-319. Minor Permit Revisions R18-2-320. Significant Permit Revisions R18-2-326. Fees Related to Individual Permits R18-2-327. Annual Emissions Inventory Questionnaire R18-2-330. Public Participation R18-2-332. Stack Height Limitation R18-2-334. Minor New Source Review

ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR SOURCES AND MAJOR MODIFICATIONS TO EXISTING MAJOR SOURCES

R18-2-401. Definitions

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R18-2-402. General R18-2-403. Permits for Sources Located in Nonattainment Areas R18-2-404. Offset Standards R18-2-405. Special Rule for Major Sources of VOC or Nitrogen Oxides in Ozone

Nonattainment Areas Classified as Serious or Severe R18-2-406. Permit Requirements for Sources Located in Attainment and

Unclassifiable Areas R18-2-407. Air Quality Impact Analysis and Monitoring Requirements R18-2-408. Innovative Control Technology R18-2-409. Air Quality Models R18-2-410. Visibility Protection R18-2-411. Permit Requirements for Sources that Locate in Attainment or

Unclassifiable Areas and Cause or Contribute to a Violation of Any National Ambient Air Quality Standard.

R18-2-412. PALs

ARTICLE 1. GENERAL


The following definitions apply to this Chapter. Where the same term is defined in this Section

and in the definitions Section for an Article of this Chapter, the Article-specific definition shall

apply.

1. “Act” means the Clean Air Act of 1963 (P.L. 88-206; 42 U.S.C. 7401 through

7671q) as amended through December 31, 2011 (and no future editions).

2. “Actual emissions” means the actual rate of emissions of a regulated NSR

pollutant from an emissions unit, as determined in subsections (2)(a) through (e).

a. In general, actual emissions as of a particular date shall equal the average

rate, in tons per year, at which the unit actually emitted the pollutant

during a consecutive 24-month period that precedes the particular date

and that is representative of normal source operation. The Director may

allow the use of a different time period upon a determination that it is

more representative of normal source operation. Actual emissions shall

be calculated using the unit’s actual operating hours, production rates,

and types of materials processed, stored or combusted during the selected

time period.

b. The Director may presume that source-specific allowable emissions for

the unit are equivalent to the actual emissions of the unit.

c. For any emissions unit that is located at a source with a Class I permit

source that and has not begun normal operations on the particular date,

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actual emissions shall equal the unit’s potential to emit on that date.

d. For any emissions unit that is located at a source with a Class II permit

source that and has not begun normal operations on the particular date,

actual emissions shall be based on applicable control equipment

requirements and projected conditions of operation.

e. This definition shall not apply for calculating whether a significant

emissions increase has occurred, or for establishing a PAL. Instead, the

definitions of projected actual emissions and baseline actual emissions in

R18-2-401 shall apply for those purposes.

3. “Administrator” means the Administrator of the United States Environmental

Protection Agency.

4. “Affected facility” means, with reference to a stationary source, any apparatus to

which a standard is applicable.

5. “Affected source” means a source that includes one or more units which are

subject to emission reduction requirements or limitations under Title IV of the

Act.

6. “Affected state” means any state whose air quality may be affected by a source

applying for a permit, permit revision, or permit renewal and that is contiguous to

Arizona or that is within 50 miles of the permitted source.

7. “Afterburner” means an incinerator installed in the secondary combustion

chamber or stack for the purpose of incinerating smoke, fumes, gases, unburned

carbon, and other combustible material not consumed during primary

combustion.

8. “Air contaminants” means smoke, vapors, charred paper, dust, soot, grime,

carbon, fumes, gases, sulfuric acid mist aerosols, aerosol droplets, odors,

particulate matter, wind-borne matter, radioactive materials, or noxious

chemicals, or any other material in the outdoor atmosphere.

9. “Air curtain destructor” means an incineration device designed and used to

secure, by means of a fan-generated air curtain, controlled combustion of only

wood waste and slash materials in an earthen trench or refractory-lined pit or bin.

10. “Air pollution” means the presence in the outdoor atmosphere of one or more

air contaminants or combinations thereof in sufficient quantities, which either

alone or in connection with other substances by reason of their concentration

and duration are or tend to be injurious to human, plant or animal life, or cause

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damage to property, or unreasonably interfere with the comfortable enjoyment of

life or property of a substantial part of a community, or obscure visibility, or

which in any way degrade the quality of the ambient air below the standards

established by the director. A.R.S. § 49-421(2).

11. “Air pollution control equipment” means equipment used to eliminate, reduce or

control the emission of air pollutants into the ambient air.

12. “Air quality control region” (AQCR) means an area so designated by the

Administrator pursuant to Section 107 of the Act and includes the following

regions in Arizona:

a. Maricopa Intrastate Air Quality Control Region which is comprised of

the County of Maricopa.

b. Pima Intrastate Air Quality Control Region which is comprised of the

County of Pima.

c. Northern Arizona Intrastate Air Quality Control Region which

encompasses the counties of Apache, Coconino, Navajo, and Yavapai.

d. Mohave-Yuma Intrastate Air Quality Control Region which

encompasses the counties of La Paz, Mohave, and Yuma.

e. Central Arizona Intrastate Air Quality Control Region which

encompasses the counties of Gila and Pinal.

f. Southeast Arizona Intrastate Air Quality Control Region which

encompasses the counties of Cochise, Graham, Greenlee, and Santa

Cruz.

13. “Allowable emissions” means the emission rate of a stationary source calculated

using both the maximum rated capacity of the source, unless the source is subject

to federally enforceable limits which restrict the operating rate or hours of

operation, and the most stringent of the following:

a. The applicable standards as set forth in 40 CFR 60, 61 and or 63;

b. The applicable existing source performance standard, as approved

for the SIP and contained in Article 7 of this Chapter emissions

limitations approved into the state implementation plan, including

those with a future compliance date; or,

c. The emissions rate specified in any federally promulgated rule or as a

federally enforceable permit conditions applicable to the stationary

source condition, including those with a future compliance date.

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14. “Ambient air” means that portion of the atmosphere, external to buildings, to

which the general public has access.

15. “Applicable implementation plan” means those provisions of the state

implementation plan approved by the Administrator or a federal implementation

plan promulgated for Arizona or any portion of Arizona in accordance with Title

I of the Act.

16. “Applicable requirement” means any of the following:

a. Any federal applicable requirement.

b. Any other requirement established pursuant to this Chapter or A.R.S.

Title 49, Chapter 3.

17. “Arizona Testing Manual” means sections 1 and 7 of the Arizona Testing Manual

for Air Pollutant Emissions amended as of March 1992 (and no future editions).

18. “ASTM” means the American Society for Testing and Materials.

19. “Attainment area” means any area in the state that has been identified in

regulations promulgated by the Administrator as being in compliance with

national ambient air quality standards.

20. “Begin actual construction” means, initiation of physical on-site construction

activities on an emissions unit which are of a permanent nature. With respect to

a change in method of operation this term refers to those onsite activities, other

than preparatory activities, which mark the initiation of the change.

a. For purposes of title I, parts C and D and section 112 of the clean air

act, and for purposes of applicants that require permits containing limits

designed to avoid the application of title I, parts C and D and section

112 of the clean air act, these activities include installation of building

supports and foundations, laying of underground pipework, and

construction of permanent storage structures but do not include any of

the following, subject to subsection (20)(c):

i. Clearing and grading, including demolition and removal of

existing structures and equipment, stripping and stockpiling of

topsoil.

ii. Installation of access roads, driveways and parking lots.

iii. Installation of ancillary structures, including fences, office

buildings and temporary storage structures, that are not a

necessary component of an emissions unit or associated air

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pollution control equipment for which the permit is required.

iv. Ordering and onsite storage of materials and equipment.

b. For purposes other than those identified in subsection (20)(a), these

activities do not include any of the following, subject to subsection

(20)(c):

i. Clearing and grading, including demolition and removal of

existing structures and equipment, stripping and stockpiling of

topsoil and earthwork cut and fill for foundations.

ii. Installation of access roads, parking lots, driveways and storage

areas.

iii. Installation of ancillary structures, including fences,

warehouses, storerooms and office buildings, provided none of

these structures impacts the design of any emissions unit or

associated air pollution control equipment.

iv. Ordering and onsite storage of materials and equipment.

v. Installation of underground pipework, including water, sewer,

electric and telecommunications utilities.

vi. Installation of building and equipment supports, including

concrete forms, footers, pilings, foundations, pads and platforms,

provided none of these supports impacts the design of any

emissions unit or associated air pollution control equipment.

c. An applicant’s performance of any activities that are excluded from the

definition of “begin actual construction” under subsection (20)(a) or (b)

shall be at the applicant’s risk and shall not reduce the applicant’s

obligations under this Chapter. The director shall evaluate an

application for a permit or permit revision and make a decision on the

same basis as if the activities allowed under subsection (20)(a) or (b)

had not occurred. A.R.S. § 49-401.01(7).

21. “Best available control technology” (BACT) means an emission limitation,

including a visible emissions standard, based on the maximum degree of

reduction for each air regulated NSR pollutant which would be emitted from any

proposed major source or major modification, taking into account energy,

environmental, and economic impact and other costs, determined by the Director

in accordance with R18-2-406(A)(4) to be achievable for such source or

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modification.

22. “Btu” means British thermal unit, which is the quantity of heat required to raise

the temperature of one pound of water 1°F.

23. “Categorical sources” means the following classes of sources:

a. Coal cleaning plants with thermal dryers;

b. Kraft pulp mills;

c. Portland cement plants;

d. Primary zinc smelters;

e. Iron and steel mills;

f. Primary aluminum ore reduction plants;

g. Primary copper smelters;

h. Municipal incinerators capable of charging more than 250 tons of refuse

per day;

i. Hydrofluoric, sulfuric, or nitric acid plants;

j. Petroleum refineries;

k. Lime plants;

l. Phosphate rock processing plants;

m. Coke oven batteries;

n. Sulfur recovery plants;

o. Carbon black plants using the furnace process;

p. Primary lead smelters;

q. Fuel conversion plants;

r. Sintering plants;

s. Secondary metal production plants;

t. Chemical process plants, which shall not include ethanol production

facilities that produce ethanol by natural fermentation included in North

American Industry Classification System codes 325193 or 312140;

u. Fossil-fuel boilers, combinations thereof, totaling more than 250 million

Btus per hour heat input;

v. Petroleum storage and transfer units with a total storage capacity more

than 300,000 barrels;

w. Taconite ore preprocessing plants;

x. Glass fiber processing plants;

y. Charcoal production plants;

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z. Fossil-fuel-fired steam electric plants and combined cycle gas turbines of

more than 250 million Btus per hour heat input.

24. “Categorically exempt activities” means any of the following:

a. Any combination of diesel-, natural gas- or gasoline-fired engines with

cumulative power equal to or less than 145 horsepower.

b. Natural gas-fired engines with cumulative power equal to or less than

155 horsepower.

c. Gasoline-fired engines with cumulative power equal to or less than 200

horsepower.

d. Any of the following emergency or stand-by engines used for less than

500 hours in each calendar year, provided the permittee keeps records

documenting the hours of operation of the engines:

i. Any combination of diesel-, natural gas- or gasoline-fired

emergency engines with cumulative power equal to or less than

2,500 horsepower.

ii. Natural gas-fired emergency engines with cumulative power

equal to or less than 2,700 horsepower.

iii. Gasoline-fired emergency engines with cumulative power equal

to or less than 3,700 horsepower.

e. Any combination of boilers with a cumulative maximum design heat

input capacity of less than 10 million Btu/hr.

25. “CFR” means the Code of Federal Regulations, amended as of July 1, 2011, (and

no future editions), with standard references in this Chapter by Title and Part, so

that “40 CFR 51” means Title 40 of the Code of Federal Regulations, Part 51.

26. “Charge” means the addition of metal bearing materials, scrap, or fluxes to a

furnace, converter or refining vessel.

27. “Clean coal technology” means any technology, including technologies applied

at the precombustion, combustion, or post-combustion stage, at a new or existing

facility that will achieve significant reductions in air emissions of sulfur dioxide

or oxides of nitrogen associated with the utilization of coal in the generation of

electricity, or process steam, that was not in widespread use as of November 15,

1990.

28. “Clean coal technology demonstration project” means a project using funds

appropriated under the heading “Department of Energy - Clean Coal

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Technology,” up to a total amount of $2,500,000,000 for commercial

demonstration of clean coal technology or similar projects funded through

appropriations for the Environmental Protection Agency. The federal

contribution for a qualifying project shall be at least 20% of the total cost of the

demonstration project.

29. “Coal” means all solid fossil fuels classified as anthracite, bituminous,

subbituminous, or lignite by ASTM D-388-91, (Classification of Coals by Rank).

30. “Combustion” means the burning of matter.

31. “Commence” means, as applied to construction of a source, or a major

modification as defined in Article 4 of this Chapter, that the owner or operator

has all necessary preconstruction approvals or permits and either has:

a. Begun, or caused to begin, a continuous program of actual onsite

construction of the source, to be completed within a reasonable time; or

b. Entered into binding agreements or contractual obligations, which cannot

be cancelled or modified without substantial loss to the owner or

operator, to undertake a program of actual construction of the source to

be completed within a reasonable time.

32. “Construction” means any physical change or change in the method of operation,

including fabrication, erection, installation, demolition, or modification of an

emissions unit, which would result in a change in actual emissions.

33. “Continuous monitoring system” means a CEMS, CERMS, or CPMS.

34. “Continuous emissions monitoring system” or “CEMS” means the total

equipment, required under the emission monitoring provisions in this Chapter,

used to sample, condition (if applicable), analyze, and to provide, on a

continuous basis, a permanent record of emissions.

35. “Continuous emissions rate monitoring system” or “CERMS” means the total

equipment required for the determination and recording of the pollutant mass

emissions rate (in terms of mass per unit of time).

36. “Continuous parameter monitoring system” or “CPMS” means the total

equipment, required under the emission monitoring provisions in this Chapter, to

monitor process or control device operational parameters (for example, control

device secondary voltages and electric currents) or other information (for

example, gas flow rate, O2 or CO2 concentrations) and to provide, on a

continuous basis, a permanent record of monitored values.

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37. “Controlled atmosphere incinerator” means one or more refractory-lined

chambers in which complete combustion is promoted by recirculation of gases by

mechanical means.

38. “Conventional air pollutant” means any pollutant for which the Administrator

has promulgated a primary or secondary national ambient air quality standard.

A.R.S. § 49-401.01(12).

39. “Department” means the Department of Environmental Quality. A.R.S. § 49-

101(2)

40. “Director” means the director of environmental quality who is also the director

of the department. A.R.S. § 49-101(3)

41. “Discharge” means the release or escape of an effluent from a source into the

atmosphere.

42. “Dust” means finely divided solid particulate matter occurring naturally or

created by mechanical processing, handling or storage of materials in the solid

state.

43. “Dust suppressant” means a chemical compound or mixture of chemical

compounds added with or without water to a dust source for purposes of

preventing air entrainment.

44. “Effluent” means any air contaminant which is emitted and subsequently escapes

into the atmosphere.

45. “Electric utility steam generating unit” means any steam electric generating unit

that is constructed for the purpose of supplying more than one-third of its

potential electric output capacity and more than 25 MW electrical output to any

utility power distribution system for sale. Any steam supplied to a steam

distribution system for the purpose of providing steam to a steam-electric

generator that would produce electrical energy for sale is also considered in

determining the electrical energy output capacity of the affected facility.

46. “Emission” means an air contaminant or gas stream, or the act of discharging an

air contaminant or a gas stream, visible or invisible.

47. “Emission standard” or “emission limitation” means a requirement established by

the state, a local government, or the Administrator which limits the quantity, rate,

or concentration of emissions of air pollutants on a continuous basis, including

any requirements which limit the level of opacity, prescribe equipment, set fuel

specifications, or prescribe operation or maintenance procedures for a source to

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assure continuous emission reduction.

48. “Emissions unit” means any part of a stationary source which emits or would

have the potential to emit any regulated air pollutant and includes an electric

steam generating unit.

49. “Equivalent method” means any method of sampling and analyzing for an air

pollutant which has been demonstrated under R18-2-311(D) to have a consistent

and quantitatively known relationship to the reference method, under specified

conditions.

50. “Excess emissions” means emissions of an air pollutant in excess of an emission

standard as measured by the compliance test method applicable to such emission

standard.

51. “Federal applicable requirement” means any of the following (including

requirements that have been promulgated or approved by EPA through

rulemaking at the time of issuance but have future effective compliance dates):

a. Any standard or other requirement provided for in the applicable

implementation plan approved or promulgated by EPA through

rulemaking under Title I of the Act that implements the relevant

requirements of the Act, including any revisions to that plan promulgated

in 40 CFR 52.

b. Any term or condition of any preconstruction permits issued pursuant to

regulations approved or promulgated through rulemaking under Title I,

including parts C or D, of the Act.

c. Any standard or other requirement under section 111 of the Act,

including 111(d).

d. Any standard or other requirement under section 112 of the Act,

including any requirement concerning accident prevention under section

112(r)(7) of the Act.

e. Any standard or other requirement of the acid rain program under Title

IV of the Act or the regulations promulgated thereunder and incorporated

pursuant to R18-2-333.

f. Any requirements established pursuant to section 504(b) or section

114(a)(3) of the Act.

g. Any standard or other requirement governing solid waste incineration,

under section 129 of the Act.

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h. Any standard or other requirement for consumer and commercial

products, under section 183(e) of the Act.

i. Any standard or other requirement for tank vessels under section 183(f)

of the Act.

j. Any standard or other requirement of the program to control air pollution

from outer continental shelf sources, under section 328 of the Act.

k. Any standard or other requirement of the regulations promulgated to

protect stratospheric ozone under Title VI of the Act, unless the

Administrator has determined that such requirements need not be

contained in a Title V permit.

l. Any national ambient air quality standard or increment maximum

increase allowed under R18-2-218 or visibility requirement under Part

C of Title I of the Act, but only as it would apply to temporary sources

permitted pursuant to section 504(e) of the Act.

52. “Federal Land Manager” means, with respect to any lands in the United States,

the secretary of the department with authority over such lands.

53. “Federally enforceable” means all limitations and conditions which are

enforceable by the Administrator under the Act, including all of the following:

a. The requirements of the New Source Performance Standards and

National Emission Standards for Hazardous Air Pollutants

contained in Articles 9 and 11 of this Chapter new source

performance standards and national emission standards for

hazardous air pollutants.

b. The requirements of such other state or county rules or regulations

approved by the Administrator, including the requirements of state and

county operating and new source review permit and registration

programs that have been approved by the Administrator.

Notwithstanding this subsection, the condition of any permit or

registration designated as being enforceable only by the state is not

federally enforceable.

c. The requirements of any applicable implementation plan.

d. Emissions limitations, controls, and other requirements, and any

associated monitoring, recordkeeping, and reporting requirements, other

than those designated as enforceable only by the state, that are

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included in a permit pursuant to R18-2-306.01 or R18-2-306.02.

54. “Federally listed hazardous air pollutant” means a pollutant listed pursuant to

R18-2-1701(9).

55. “Final permit” means the version of a permit issued by the Department after

completion of all review required by this Chapter.

56. “Fixed capital cost” means the capital needed to provide all the depreciable

components.

57. “Fuel” means any material which is burned for the purpose of producing energy.

58. “Fuel burning equipment” means any machine, equipment, incinerator, device or

other article, except stationary rotating machinery, in which combustion takes

place.

59. “Fugitive emissions” means those emissions which could not reasonably pass

through a stack, chimney, vent, or other functionally equivalent opening.

60. “Fume” means solid particulate matter resulting from the condensation and

subsequent solidification of vapors of melted solid materials.

61. “Fume incinerator” means a device similar to an afterburner installed for the

purpose of incinerating fumes, gases and other finely divided combustible

particulate matter not previously burned.

62. “Good engineering practice (GEP) stack height” means a stack height meeting

the requirements described in R18-2-332.

63. “Hazardous air pollutant” means any federally listed hazardous air pollutant.

64. “Heat input” means the quantity of heat in terms of Btus generated by fuels fed

into the fuel burning equipment under conditions of complete combustion.

65. “Incinerator” means any equipment, machine, device, contrivance or other

article, and all appurtenances thereof, used for the combustion of refuse, salvage

materials or any other combustible material except fossil fuels, for the purpose of

reducing the volume of material.

66. “Indian governing body” means the governing body of any tribe, band, or group

of Indians subject to the jurisdiction of the United States and recognized by the

United States as possessing power of self-government.

67. “Indian reservation” means any federally recognized reservation established by

Treaty, Agreement, Executive Order, or Act of Congress.

68. “Insignificant activity” means any of the following activities:

a. Liquid Storage and Piping

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i. Petroleum product storage tanks containing the following

substances, provided the applicant lists and identifies the

contents of each tank with a volume of 350 gallons or more and

provides threshold values for throughput or capacity or both for

each such tank: diesel fuels and fuel oil in storage tanks with

capacity of 40,000 gallons or less, lubricating oil, transformer

oil, and used oil.

ii. Gasoline storage tanks with capacity of 10,000 gallons or less.

iii. Storage and piping of natural gas, butane, propane, or liquified

petroleum gas, provided the applicant lists and identifies the

contents of each stationary storage vessel with a volume of 350

gallons or more and provides threshold values for throughput or

capacity or both for each such vessel.

iv. Piping of fuel oils, used oil and transformer oil, provided the

applicant includes a system description.

v. Storage and handling of drums or other transportable containers

where the containers are sealed during storage, and covered

during loading and unloading, including containers of waste and

used oil regulated under the federal Resource Conservation and

Recovery Act, 42 U.S.C. 6901-6992k. Permit applicants must

provide a description of material in the containers and the

approximate amount stored.

vi. Storage tanks of any size containing exclusively soaps,

detergents, waxes, greases, aqueous salt solutions, aqueous

solutions of acids that are not regulated air pollutants, or aqueous

caustic solutions, provided the permit applicant specifies the

contents of each storage tank with a volume of 350 gallons or

more.

vii. Electrical transformer oil pumping, cleaning, filtering, drying

and the re-installation of oil back into transformers.

b. Internal combustion engine-driven compressors, internal combustion

engine-driven electrical generator sets, and internal combustion engine-

driven water pumps used for less than 500 hours per calendar year for

emergency replacement or standby service, provided the permittee keeps

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records documenting the hours of operation of this equipment.

c. Low Emitting Processes

i. Batch mixers with rated capacity of 5 cubic feet or less.

ii. Wet sand and gravel production facilities that obtain material

from subterranean and subaqueous beds, whose production rate

is 200 tons/hour or less, and whose permanent in-plant roads are

paved and cleaned to control dust. This does not include

activities in emissions units which are used to crush or grind any

non-metallic minerals.

iii. Powder coating operations.

iv. Equipment using water, water and soap or detergent, or a

suspension of abrasives in water for purposes of cleaning or

finishing.

v. Blast-cleaning equipment using a suspension of abrasive in water

and any exhaust system or collector serving them exclusively.

vi. Plastic pipe welding.

d. Site Maintenance

i. Housekeeping activities and associated products used for

cleaning purposes, including collecting spilled and accumulated

materials at the source, including operation of fixed vacuum

cleaning systems specifically for such purposes.

ii. Sanding of streets and roads to abate traffic hazards caused by

ice and snow.

iii. Street and parking lot striping.

iv. Architectural painting and associated surface preparation for

maintenance purposes at industrial or commercial facilities.

e. Sampling and Testing

i. Noncommercial (in-house) experimental, analytical laboratory

equipment which is bench scale in nature, including quality

control/quality assurance laboratories supporting a stationary

source and research and development laboratories.

ii. Individual sampling points, analyzers, and process

instrumentation, whose operation may result in emissions but

that are not regulated as emission units.

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f. Ancillary Non-Industrial Activities

i. General office activities, such as paper shredding, copying,

photographic activities, and blueprinting, but not to include

incineration.

ii. Use of consumer products, including hazardous substances as

that term is defined in the Federal Hazardous Substances Act (15

U.S.C. 1261 et seq.) where the product is used at a source in the

same manner as normal consumer use.

iii. Activities directly used in the diagnosis and treatment of disease,

injury or other medical condition.

g. Miscellaneous Activities

i. Installation and operation of potable, process and waste water

observation wells, including drilling, pumping, filtering

apparatus.

ii. Transformer vents.

69. “Kraft pulp mill” means any stationary source which produces pulp from wood

by cooking or digesting wood chips in a water solution of sodium hydroxide and

sodium sulfide at high temperature and pressure. Regeneration of the cooking

chemicals through a recovery process is also considered part of the kraft pulp

mill.

70. “Lead” means elemental lead or alloys in which the predominant component is

lead.

71. “Lime hydrator” means a unit used to produce hydrated lime product.

72. “Lime plant” includes any plant which produces a lime product from limestone

by calcination. Hydration of the lime product is also considered to be part of the

source.

73. “Lime product” means any product produced by the calcination of limestone.

74. “Major modification” is defined as follows:

a. A major modification is any physical change in or change in the method

of operation of a major source that would result in both a significant

emissions increase of any regulated NSR pollutant and a significant net

emissions increase of that pollutant from the stationary source.

b. Any emissions increase or net emissions increase that is significant for

nitrogen oxides or volatile organic compounds is significant for ozone.

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c. For the purposes of this definition, none of the following is a physical

change or change in the method of operation:

i. Routine maintenance, repair, and replacement;

ii. Use of an alternative fuel or raw material by reason of an order

under sections 2(a) and (b) of the Energy Supply and

Environmental Coordination Act of 1974, 15 U.S.C. 792, or by

reason of a natural gas curtailment plan under the Federal Power

Act, 16 U.S.C. 792 - 825r;

iii. Use of an alternative fuel by reason of an order or rule under

section 125 of the Act;

iv. Use of an alternative fuel at a steam generating unit to the extent

that the fuel is generated from municipal solid waste;

v. Use of an alternative fuel or raw material by a stationary

source that either:

(1) The source was capable of accommodating before

December 12, 1976, unless the change would be

prohibited under any federally enforceable permit

condition established after December 12, 1976, under

40 CFR 52.21, or under Articles 3 or 4 of this

Chapter; or

(2) The source is approved to use under any permit

issued under 40 CFR 52.21, or under Articles 3 or 4

of this Chapter.

vi. An increase in the hours of operation or in the production

rate, unless the change would be prohibited under any

federally enforceable permit condition established after

December 12, 1976, under 40 CFR 52.21, or under Articles 3

or 4 of this Chapter.

v. For purposes of determining the applicability of R18-2-403

through R18-2-405 or R18-2-411, any of the following:

(1) Use of an alternative fuel or raw material by a

stationary source that the source was capable of

accommodating before December 21, 1976, unless the

change would be prohibited under any federally

Commented [SB1]: Separated existing (v) and (vi) into (v)(1)-(3) and (vi)(1)-(3) to distinguish between NA-NSR and PSD definitions. The differences between the NA-NSR and PSD definitions are highlighted.

Page 17 of 153


enforceable permit condition established after

December 12, 1976 under 40 CFR 52.21 or under

Articles 3 or 4 of this Chapter; or


stationary source that the source is approved to use

under any permit issued under R18-2-403;

(3) An increase in the hours of operation or in the

production rate, unless the change would be


condition established after December 21, 1976, under

40 CFR 52.21, or under Articles 3 or 4 of this

Chapter.

vi. For purposes of determining the applicability of R18-2-406

through R18-2-408 or R18-2-410, any of the following:


stationary source that the source was capable of

accommodating before January 6, 1975, unless the

change would be prohibited under any federally

enforceable permit condition established after

January 6, 1975 under 40 CFR 52.21 or under

Articles 3 or 4 of this Chapter;


stationary source that the source is approved to use

under any permit issued under 40 CFR 52.21, or

under R18-2-406; or

(3) An increase in the hours of operation or in the

production rate, unless the change would be


condition established after January 6, 1975, under 40

CFR 52.21, or under Articles 3 or 4 of this Chapter.

vii. Any change in ownership at a stationary source;

viii. [Reserved.]

ix. The installation, operation, cessation, or removal of a temporary

clean coal technology demonstration project, if the project

Page 18 of 153


complies with:

(1) The SIP, and

(2) Other requirements necessary to attain and maintain the

national ambient air quality standards during the project

and after it is terminated;

x. For electric utility steam generating units located in attainment

and unclassifiable areas only, the installation or operation of a

permanent clean coal technology demonstration project that

constitutes repowering, if the project does not result in an

increase in the potential to emit any regulated pollutant emitted

by the unit. This exemption applies on a pollutant-by-pollutant

basis; and

xi. For electric utility steam generating units located in attainment

and unclassifiable areas only, the reactivation of a very clean

coal-fired electric utility steam generating unit.

d. This definition shall not apply with respect to a particular regulated NSR

pollutant when the major source is complying with the requirements of

R18-2-412 for a PAL for that regulated NSR pollutant. Instead, the

definition of PAL major modification in R18-2-401(17) R18-2-401(20)

shall apply.

75. “Major source” means:

a. A major source as defined in R18-2-401.

b. A major source under section 112 of the Act:

i. For pollutants other than radionuclides, any stationary source

that emits or has the potential to emit, in the aggregate, including

fugitive emission 10 tons per year (tpy) or more of any

hazardous air pollutant which has been listed pursuant to section

112(b) of the Act, 25 tpy or more of any combination of such

hazardous air pollutants, or such lesser quantity as described in

Article 11 of this Chapter. Notwithstanding the preceding

sentence, emissions from any oil or gas exploration or

production well (with its associated equipment) and emissions

from any pipeline compressor or pump station shall not be

aggregated with emissions from other similar units, whether or

Page 19 of 153


not such units are in a contiguous area or under common control,

to determine whether such units or stations are major sources; or

ii. For radionuclides, “major source” shall have the meaning

specified by the Administrator by rule.

c. A major stationary source, as defined in section 302 of the Act, that

directly emits or has the potential to emit, 100 tpy or more of any air

pollutant including any major source of fugitive emissions of any such

pollutant. The fugitive emissions of a stationary source shall not be

considered in determining whether it is a major stationary source for the

purposes of section 302(j) of the Act, unless the source belongs to a

section 302(j) category.

76. “Malfunction” means any sudden and unavoidable failure of air pollution control

equipment, process equipment or a process to operate in a normal and usual

manner, but does not include failures that are caused by poor maintenance,

careless operation or any other upset condition or equipment breakdown which

could have been prevented by the exercise of reasonable care.

77. “Minor source” means a source of air pollution which is not a major source for

the purposes of Article 4 of this Chapter and over which the Director, acting

pursuant to A.R.S. § 49-402(B), has asserted jurisdiction.

78. “Minor source baseline area” means the air quality control region in which the

source is located.

79. “Mobile source” means any combustion engine, device, machine or equipment

that operates during transport and that emits or generates air contaminants

whether in motion or at rest. A.R.S. § 49-401.01(23).

80. “Modification” or “modify” means a physical change in or change in the

method of operation of a source that increases the emissions of any regulated air

pollutant emitted by such source by more than any relevant de minimis amount

or that results in the emission of any regulated air pollutant not previously

emitted by more than such de minimis amount. An increase in emissions at a

minor source shall be determined by comparing the source’s potential to emit

before and after the modification. The following exemptions apply:

a. A physical or operational change does not include routine maintenance,

repair or replacement.

b. An increase in the hours of operation or if the production rate is not

Page 20 of 153


considered an operational change unless such increase is prohibited

under any permit condition that is legally and practically enforceable by

the department.

c. A change in ownership at a source is not considered a modification.

A.R.S. § 49-401.01(24).

81. “Monitoring device” means the total equipment, required under the applicable

provisions of this Chapter, used to measure and record, if applicable, process

parameters.

82. “Motor vehicle” means any self-propelled vehicle designed for transporting

persons or property on public highways.

83. “Multiple chamber incinerator” means three or more refractory-lined combustion

chambers in series, physically separated by refractory walls and interconnected

by gas passage ports or ducts.

84. “Natural conditions” includes naturally occurring phenomena that reduce

visibility as measured in terms of light extinction, visual range, contrast, or

coloration.

85. “National ambient air quality standard” means the ambient air pollutant

concentration limits established by the Administrator pursuant to section 109 of

the Act. A.R.S. § 49-401.01(25).

86. “National emission standards for hazardous air pollutants” or “NESHAP”

means standards adopted by the Administrator under section 112 of the Act.

8687. “Necessary preconstruction approvals or permits” means those permits or

approvals required under the Act and those air quality control laws and rules

which are part of the SIP.

8788. “Net emissions increase” means:

a. The amount by which the sum of subsections (87)(a)(i) (88)(a)(i) and (ii)

exceeds zero:

i. The increase in emissions of a regulated NSR pollutant from a

particular physical change or change in the method of operation

at a stationary source as calculated pursuant to R18-2-402(D);

and

ii. Any other increases and decreases in actual emissions of the

regulated NSR pollutant at the source that are contemporaneous

with the particular change and are otherwise creditable.

Page 21 of 153


iii. For purposes of calculating increases and decreases in actual

emissions under subsection (87)(a)(ii) (88)(a)(ii), baseline actual

emissions shall be determined as provided in the definition of

baseline actual emissions in R18-2-401(2), except that

subsections R18-2-401(a)(iii) R18-2-401(2)(a)(iii) and (b)(iv)

shall not apply.

b. An increase or decrease in actual emissions is contemporaneous with the

increase from the particular change only if it occurs between:

i. The date five years before construction on the particular change

commences, and

ii. The date that the increase from the particular change occurs.

c. For purposes of determining the applicability of R18-2-403 through

R18-2-405 or R18-2-411, an An increase or decrease in actual

emissions is creditable only if the Director has not relied on it in issuing

a permit or permit revision under R18-2-403, which is in effect when

the increase in actual emissions from the particular change occurs. For

purposes of determining the applicability of R18-2-406 through R18-

2-408 or R18-2-410, an increase or decrease in actual emissions is

creditable only if the Director has not relied on it in issuing a permit

under R18-2-406, which is in effect when the increase in actual

emissions from the particular change occurs.

d. An increase or decrease in actual emissions of sulfur dioxide, nitrogen

oxides, or PM10, or PM2.5 which occurs before the applicable minor

source baseline date, as described defined in R18-2-218, is creditable

only if it is required to be considered in calculating the amount of

maximum allowable increases remaining available.

e. An increase in actual emissions is creditable only to the extent that the

new level of actual emissions exceeds the old level.

f. A decrease in actual emissions is creditable only to the extent that it

satisfies all of the following conditions:

i. The old level of actual emissions or the old level of allowable

emissions, whichever is lower, exceeds the new level of actual

emissions.

ii. It is enforceable as a practical matter at and after the time that

Commented [SB2]: Edited to distinguish between NA-NSR and PSD requirements.

Page 22 of 153


actual construction on the particular change begins.

iii. It has approximately the same qualitative significance for public

health and welfare as that attributed to the increase from the

particular change.

iv. The emissions unit was actually operated and emitted the

specific pollutant.

v. For a source located in an area designated as nonattainment for

the regulated NSR pollutant, the Director has not relied on it in

issuing any permit under Article 4, R18-2-302.01, or R18-2-334,

and the state has not relied on it in demonstrating attainment or

reasonable further progress.

g. An increase that results from a physical change at a source occurs when

the emissions unit on which construction occurred becomes operational

and begins to emit a particular pollutant. Any emissions replacement

unit, as defined in R18-2-401(24), that replaces an existing emissions

unit and that requires shakedown becomes operational only after a

reasonable shakedown period, not to exceed 180 days.

h. Subsection (2)(a) shall not apply for determining creditable increases

and decreases.

8889. “New source” means any stationary source of air pollution which is subject to an

applicable a new source performance standard under Article 9 of this Chapter.

90. “New source performance standards” means standards adopted by the

Administrator under section 111(b) of the Act.

8991. “Nitric acid plant” means any facility producing nitric acid 30% to 70% in

strength by either the pressure or atmospheric pressure process.

9092. “Nitrogen oxides” means all oxides of nitrogen except nitrous oxide, as measured

by test methods set forth in the Appendices to 40 CFR 60.

9193. “Nonattainment area” means an area so designated by the Administrator acting

pursuant to section 107 of the Act as exceeding national primary or secondary

ambient air standards for a particular pollutant or pollutants.

9294. “Nonpoint source” means a source of air contaminants which lacks an

identifiable plume or emission point.

9395. “Opacity” means the degree to which emissions reduce the transmission of light

and obscure the view of an object in the background.

Page 23 of 153


9496. “Operation” means any physical or chemical action resulting in the change in

location, form, physical properties, or chemical character of a material.

9597. “Owner or operator” means any person who owns, leases, operates, controls, or

supervises an affected facility or a stationary source.

9698. “Particulate matter” means any airborne finely divided solid or liquid material

with an aerodynamic diameter smaller than 100 micrometers.

9799. “Particulate matter emissions” means all finely divided solid or liquid materials

other than uncombined water, emitted to the ambient air as measured by

applicable test methods and procedures described in R18-2-311.

98100. “Permitting authority” means the department or a county department, agency or

air pollution control district that is charged with enforcing a permit program

adopted pursuant to A.R.S. § 49-480(A). A.R.S. § 49-401.01(28).

99101. “Permitting exemption thresholds” for a regulated minor NSR pollutant means

the following:

Regulated Air Pollutant

Emission Rate in tons per year (TPY)

PM2.5 (primary emissions only; levels for

precursors are set below)

5

PM10 7.5

SO2 20

NOx 20

VOC 20

CO 50

Pb 0.3

100102. “Person” means any public or private corporation, company, partnership, firm,

association or society of persons, the federal government and any of its

departments or agencies, the state and any of its agencies, departments or

political subdivisions, as well as a natural person.

101103. “Planning agency” means an organization designated by the governor pursuant

to 42 U.S.C. 7504. A.R.S. § 49-401.01(29).

102. “Predictive Emissions Monitoring System” or “PEMS” means the total

equipment, required under the emission monitoring provisions in this

Chapter, to monitor process and control device operational parameters and

Page 24 of 153


other information, and calculate and record the mass emissions rate on a

continuous basis.

103104. “PM2.5” means particulate matter with an aerodynamic diameter less than or

equal to a nominal 2.5 micrometers as measured by a reference method based on

40 CFR 50 Appendix L, or by an equivalent method designated according to 40

CFR 53.

104105. “PM10” means particulate matter with an aerodynamic diameter less than or equal

to a nominal 10 micrometers as measured by a reference method contained

within 40 CFR 50 Appendix J or by an equivalent method designated in

accordance with 40 CFR 53.

105106. “PM10 emissions” means finely divided solid or liquid material, with an

aerodynamic diameter less than or equal to a nominal 10 micrometers emitted to

the ambient air as measured by applicable test methods and procedures described

in R18-2-311.

106107. “Plume” means visible effluent.

107108. “Pollutant” means an air contaminant the emission or ambient concentration of

which is regulated pursuant to this Chapter.

108109. “Portable source” means any building, structure, facility, or installation subject to

regulation pursuant to A.R.S. § 49-426 which emits or may emit any air pollutant

and is capable of being operated at more than one location.

109110. “Potential to emit” or “potential emission rate” means the maximum capacity of a

stationary source to emit a pollutant, excluding secondary emissions, under its

physical and operational design. Any physical or operational limitation on the

capacity of the source to emit a pollutant, including air pollution control

equipment and restrictions on hours of operation or on the type or amount of

material combusted, stored, or processed, shall be treated as part of its design if

the limitation or the effect it would have on emissions is legally and practically

enforceable by the Department or a county under A.R.S. Title 49, Chapter 3; any

rule, ordinance, order or permit adopted or issued under A.R.S. Title 49, Chapter

3 or the state implementation plan.

111. “Predictive Emissions Monitoring System” or “PEMS” means the total

equipment, required under the emission monitoring provisions in this

Chapter, to monitor process and control device operational parameters (for

example, control device secondary voltages and electric currents) and other

Page 25 of 153


information (for example, gas flow rate, O2 or CO2 concentrations), and

calculate and record the mass emissions rate (for example, lb/hr) on a

continuous basis.

110112. “Primary ambient air quality standards” means the ambient air quality standards

which define levels of air quality necessary, with an adequate margin of safety, to

protect the public health, as specified in Article 2 of this Chapter.

111113. “Process” means one or more operations, including equipment and technology,

used in the production of goods or services or the control of by-products or

waste.

112114. “Project” means a physical change in, or change in the method of operation of, an

existing major source.

115. “Proposed final permit” means the version of a Class I permit or Class I

permit revision that the Department proposes to issue and forwards to the

Administrator for review in compliance with R18-2-307(A). A proposed final

permit constitutes a final and enforceable authorization to begin actual

construction of, but not to operate, a new Class I source or a modification to

a Class I source.

113116. “Proposed permit” means the version of a permit for which the Director offers

public participation under R18-2-330 or affected state review under R18-2-

307(D).

114. “Proposed final permit” means the version of a Class I permit or Class I

permit revision that the Department proposes to issue and forwards to the

Administrator for review in compliance with R18-2-307(A).

115117. “Reactivation of a very clean coal-fired electric utility steam generating unit”

means any physical change or change in the method of operation associated with

commencing commercial operations by a coal-fired utility unit after a period of

discontinued operation if the unit:

a. Has not been in operation for the two-year period before enactment of

the Clean Air Act Amendments of 1990, and the emissions from the unit

continue to be carried in the Director’s emissions inventory at the time of

enactment;

b. Was equipped before shutdown with a continuous system of emissions

control that achieves a removal efficiency for sulfur dioxide of no less

than 85% and a removal efficiency for particulates of no less than 98%;

Page 26 of 153


c. Is equipped with low-NOx burners before commencement of operations

following reactivation; and

d. Is otherwise in compliance with the Act.

116118. “Reasonable further progress” means the schedule of emission reductions defined

within a nonattainment area plan as being necessary to come into compliance

with a national ambient air quality standard by the primary standard attainment

date.

117119. “Reasonably available control technology” (RACT) means devices, systems,

process modifications, work practices or other apparatus or techniques that are

determined by the Director to be reasonably available taking into account:

a. The necessity of imposing the controls in order to attain and maintain a

national ambient air quality standard;

b. The social, environmental, energy and economic impact of the controls;

c. Control technology in use by similar sources; and

d. The capital and operating costs and technical feasibility of the controls.

118120. “Reclaiming machinery” means any machine, equipment device or other article

used for picking up stored granular material and either depositing this material on

a conveyor or reintroducing this material into the process.

119121. “Reference method” means the methods of sampling and analyzing for an air

pollutant as described in the Arizona Testing Manual; 40 CFR 50, Appendices A

through K; 40 CFR 51, Appendix M; 40 CFR 52, Appendices D and E; 40 CFR

60, Appendices A through F; and 40 CFR 61, Appendices B and C, as

incorporated by reference in 18 A.A.C. 2, Appendix 2.

120122. “Regulated air pollutant” means any of the following:

a. Any conventional air pollutant.

b. Nitrogen oxides and volatile organic compounds.

c. Any air contaminant that is subject to a standard contained in Article 9 of

this Chapter.

d. Any hazardous air pollutant as defined in Article 17 of this Chapter.

e. Any Class I or II substance listed in section 602 of the Act.

121123. “Regulated minor NSR pollutant” means any pollutant for which a national

ambient air quality standard has been promulgated and the following precursors

for such pollutants:

a. VOC and nitrogen oxides as precursors to ozone.

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b. Nitrogen oxides and sulfur dioxide as precursors to PM2.5.

122124. “Regulated NSR pollutant” means any of the following is defined as follows:

a. Any For purposes of determining the applicability of R18-2-403

through R18-2-405 and R18-2-411, regulated NSR pollutant means

any pollutant for which a national ambient air quality standard has been

promulgated and any pollutant identified under this subsection as a

constituent of or precursor to such pollutant, provided that such

constituent or precursor pollutant may only be regulated under NSR

as part of the regulation of the general pollutant. Precursors for

purposes of NSR are the following:

i. Volatile organic compounds and nitrogen oxides are precursors

to ozone in all areas.

ii. Sulfur dioxide is a precursor to PM2.5 in all areas.

iii. Nitrogen oxides are precursors to PM2.5 in all areas.

iv. VOC and ammonia are precursors to PM2.5 in PM2.5

nonattainment areas. 1

b. For all other purposes, regulated NSR pollutant means the

pollutants identified in subsection (a) and the following:

i. Any pollutant that is subject to any standard promulgated

under Article 9 of this Chapter new source performance

standard.

cii. Any Class I or II substance subject to a standard promulgated

under or established by Title VI of the Act as of July 1, 2011.

diii. [Reserved.] Any pollutant that is otherwise subject to

regulation under the Act, except greenhouse gases as defined

in 40 CFR 86.1818-12(a).

ec. Notwithstanding subsections (122)(a) (124)(a) through (d) and (b), the

term regulated NSR pollutant shall not include any or all hazardous air

1 NOTE TO REVIEWERS: Changes relating to the treatment of PM2.5 in the NNSR program are based on EPA’s proposed implementation rule for PM2.5 NAA at 80 Fed. Reg. 15340 (March 23, 2015). The implementation rule’s NNSR provisions appear necessary to comply with the D.C. Circuit’s decision that Part D, Subpart 4 applies to PM2.5 nonattainment areas, see NRDC v. EPA, 706 F.3d 428 (D.C. Cir. 2013), and are therefore likely to be included in the final rule. In particular, the court noted that under § 189(e), control requirements must apply to major sources of all precursors of PM2.5 unless EPA has determined that the sources do not contribute to levels exceeding the NAAQS in a particular nonattainment area. Since we have received no such determination from EPA, we should list all 4 known PM2.5 precursors as regulated NSR pollutants.

Commented [SB3]: Edited to reflect differences between NA-NSR and PSD in federal regulations. Eliminates potential NA-NSR for major mod at existing source that is major only for non-criteria pollutant.

Commented [SB4]: See footnote.

Page 28 of 153


pollutants either listed under R18-2-1101 in section 112 of the Act, or

added to the list pursuant to section 112(b)(2) of the Act, unless the

listed hazardous air pollutant is also regulated as a constituent or

precursor of a general pollutant listed under section 108 of the Act as of

July 1, 2010.

fd. Particulate matter emissions, PM2.5 emissions, and PM10 emissions

shall include gaseous emissions from a source or activity which condense

to form particulate matter at ambient temperatures. On and after January

1, 2011, condensable particulate matter shall be accounted for in

applicability determinations and in establishing emissions limitations for

particulate matter, PM2.5 and PM10 in permits issued under Article 4.

123125. “Repowering” means:

a. Replacing an existing coal-fired boiler with one of the following clean

coal technologies:

i. Atmospheric or pressurized fluidized bed combustion;

ii. Integrated gasification combined cycle;

iii. Magnetohydrodynamics;

iv. Direct and indirect coal-fired turbines;

v. Integrated gasification fuel cells; or

vi. As determined by the Administrator, in consultation with the

United States Secretary of Energy, a derivative of one or more of

the above technologies; and

vii. Any other technology capable of controlling multiple

combustion emissions simultaneously with improved boiler or

generation efficiency and with significantly greater waste

reduction relative to the performance of technology in

widespread commercial use as of November 15, 1990.

b. Repowering also includes any oil, gas, or oil and gas-fired unit that has

been awarded clean coal technology demonstration funding as of January

1, 1991, by the United States Department of Energy.

c. The Director shall give expedited consideration to permit applications for

any source that satisfies the requirements of this subsection and is

granted an extension under section 409 of the Act.

124126. “Run” means the net period of time during which an emission sample is

Page 29 of 153


collected, which may be, unless otherwise specified, either intermittent or

continuous within the limits of good engineering practice.

125. “SCREEN model” means the AERSCREEN air dispersion model published

by the Administrator in April 2011 and available on the Support Center for

Regulatory Atmospheric Modeling web site: http://www.epa.gov/ttn/scram.

126127. “Secondary ambient air quality standards” means the ambient air quality

standards which define levels of air quality necessary to protect the public

welfare from any known or anticipated adverse effects of a pollutant, as specified

in Article 2 of this Chapter.

127128. “Secondary emissions” means emissions which are specific, well defined,

quantifiable, occur as a result of the construction or operation of a major source

or major modification, but do not come from the major source or major

modification itself, and impact the same general area as the stationary source or

modification which causes the secondary emissions. Secondary emissions

include emissions from any offsite support facility which would not otherwise be

constructed or increase its emissions except as a result of the construction or

operation of the major source or major modification. Secondary emissions do not

include any emissions which come directly from a mobile source, such as

emissions from the tailpipe of a motor vehicle, from a train, or from a vessel.

128129. “Section 302(j) category” means:

a. Any of the classes of sources listed in the definition of categorical source

in subsection (23); or

b. Any category of affected facility which, as of August 7, 1980, is being

regulated under section 111 or 112 of the Act.

129130. “Shutdown” means the cessation of operation of any air pollution control

equipment or process equipment for any purpose, except routine phasing out of

process equipment.

130131. “Significant” means, in reference to a significant emissions increase, a net

emissions increase, or a stationary source’s potential to emit or a stationary

source’s maximum capacity to emit with elective limits under R18-2-

302(B)(2):

a. A rate of emissions of conventional pollutants that would equal or

exceed any of the following rates:

Commented [SB5]: Federal NA-NSR rules establish significant rates solely for criteria pollutants and precursors. Amending to provide that significant rates for non-criteria pollutants apply solely for determining PSD and Class II permit applicability.

Page 30 of 153


Pollutant Emissions Rate

Carbon monoxide 100 tons per year (tpy)

Nitrogen oxides 40 tpy

Sulfur dioxide 40 tpy

Particulate matter 25 tpy

PM10 15 tpy

PM2.5 10 tpy of direct PM2.5 emissions;

40 tpy of sulfur dioxide emissions;

40 tpy of nitrogen oxide emissions.

VOC Ozone 40 tpy of VOC or nitrogen oxides

Lead 0.6 tpy

b. For purposes of determining the applicability of R18-2-302(B)(2) or

R18-2-406, a rate of emissions of non-conventional pollutants that

would equal or exceed any of the following:

Pollutant Emissions Rate

Particulate matter 25 tpy

Fluorides 3 tpy

Sulfuric acid mist 7 tpy

Hydrogen sulfide (H2S) 10 tpy

Total reduced sulfur

(including H2S)

10 tpy

Reduced sulfur compounds

(including H2S)

10 tpy

Municipal waste combustor

organics (measured as total tetra-

through octa-chlorinated dibenzo-

p-dioxins and dibenzofurans)

3.5 x 10-6 tpy

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Municipal waste combustor

metals (measured as particulate

matter)

15 tpy

Municipal waste combustor acid

gases (measured as sulfur

dioxide and hydrogen chloride)

40 tpy

Municipal solid waste landfill

emissions (measured as

nonmethane organic compounds)

50 tpy

Any regulated NSR pollutant

not specifically listed in this

subsection or subsection

(131)(a).

Any emission rate

bc. In ozone nonattainment areas classified as serious or severe, significant

emissions of the emission rate for nitrogen oxides and or VOC shall

be determined under R18-2-405.

cd. In a carbon monoxide nonattainment area classified as serious, a rate of

emissions that would equal or exceed 50 tons per year, if the

Administrator has determined that stationary sources contribute

significantly to carbon monoxide levels in that area.

e. In PM2.5 nonattainment areas, 40 tons per year of VOC as a

precursor of PM2.5.

d. For a regulated NSR pollutant that is not listed in subsection

(130)(a), any emission rate.

ef. Notwithstanding the emission rates listed in subsection (130)(a), (131)(a)

or (b), for purposes of determining the applicability of R18-2-406,

any emissions rate or any net emissions increase associated with a major

source or major modification, which would be constructed within 10

kilometers of a Class I area and have an impact on the ambient air quality

of such area equal to or greater than 1 mg/m3 µg/m3 (24-hour average).

131132. “Significant emissions increase” means, for a regulated NSR pollutant, an

increase in emissions that is significant as defined in this Section for that

Commented [SB6]: Under NRDC decision, and EPA proposal, ammonia must be treated as a precursor for PM2.5. However, EPA has not established significant rate for ammonia, even in proposal. If we used the PSD definition of significant for NA-NSR, the significant rate for ammonia would be 0 under this provision.

Commented [SB7]: Reflects NRDC decision that Part 4 applies to PM2.5 NAA and EPA proposed rule.

Page 32 of 153


pollutant.

132133. “Smoke” means particulate matter resulting from incomplete combustion.

133134. “Source” means any building, structure, facility or installation that may cause or

contribute to air pollution or the use of which may eliminate, reduce or control

the emission of air pollution. A.R.S. § 49-401.01(23).

134135. “Stack” means any point in a source designed to emit solids, liquids, or gases into

the air, including a pipe or duct but not including flares.

135136. “Stack in existence” means that the owner or operator had either:

a. Begun, or caused to begin, a continuous program of physical onsite

construction of the stack;

b. Entered into binding agreements or contractual obligations, which could

not be cancelled or modified without substantial loss to the owner or

operator, to undertake a program of construction of the stack to be

completed in a reasonable time.

136137. “Start-up” means the setting into operation of any air pollution control equipment

or process equipment for any purpose except routine phasing in of process

equipment.

137138. “State implementation plan” or “SIP” means the accumulated record of

enforceable air pollution control measures, programs and plans adopted by the

Director and submitted to and approved by the Administrator pursuant to 42

U.S.C. 7410.

138139. “Stationary rotating machinery” means any gas engine, diesel engine, gas

turbine, or oil fired turbine operated from a stationary mounting and used for the

production of electric power or for the direct drive of other equipment.

139140. “Stationary source” means any building, structure, facility or installation subject

to regulation pursuant to A.R.S. § 49-426(A) which emits or may emit any

regulated NSR air pollutant. “Building,” “structure,” “facility,” or “installation”

means all of the pollutant-emitting activities which belong to the same industrial

grouping, are located on one or more contiguous or adjacent properties, and are

under the control of the same person or persons under common control.

Pollutant-emitting activities shall be considered as part of the same industrial

grouping if they belong to the same “Major Group” as described in the “Standard

Industrial Classification Manual, 1987.”

141. “Subject to regulation” means, for any air pollutant, that the pollutant is

Page 33 of 153


subject to either a provision in the Act, or a nationally-applicable regulation

codified by the administrator in 40 CFR chapter I, subchapter C, that

requires actual control of the quantity of emissions of that pollutant, and

that such a control requirement has taken effect and is operative to control,

limit or restrict the quantity of emissions of that pollutant released from the

regulated activity.

140142. “Sulfuric acid plant” means any facility producing sulfuric acid by the contact

process by burning elemental sulfur, alkylation acid, hydrogen sulfide, or acid

sludge, but does not include facilities where conversion to sulfuric acid is utilized

as a means of preventing emissions of sulfur dioxide or other sulfur compounds

to the atmosphere.

141143. “Temporary clean coal technology demonstration project” means a clean coal

technology demonstration project operated for five years or less, and that

complies with the applicable implementation plan and other requirements

necessary to attain and maintain the national ambient air quality standards during

the project and after the project is terminated.

142144. “Temporary source” means a source which is portable, as defined in A.R.S. § 49-

401.01(23) and which is not an affected source.

143145. “Total reduced sulfur” (TRS) means the sum of the sulfur compounds, primarily

hydrogen sulfide, methyl mercaptan, dimethyl sulfide, and dimethyl disulfide,

that are released during kraft pulping and other operations and measured by

Method 16 in 40 CFR 60, Appendix A.

144146. “Trivial activities” means activities and emissions units, such as the following,

that may be omitted from a permit or registration application. Certain of the

following listed activities include qualifying statements intended to exclude

similar activities:

a. Low-Emitting Combustion

i. Combustion emissions from propulsion of mobile sources;

ii. Emergency or backup electrical generators at residential

locations;

iii. Portable electrical generators that can be moved by hand from

one location to another. “Moved by hand” means capable of

being moved without the assistance of any motorized or non-

motorized vehicle, conveyance, or device;

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b. Low- Or Non-Emitting Industrial Activities

i. Blacksmith forges;

ii. Hand-held or manually operated equipment used for buffing,

polishing, carving, cutting, drilling, sawing, grinding, turning,

routing or machining of ceramic art work, precision parts,

leather, metals, plastics, fiberboard, masonry, carbon, glass, or

wood;

iii. Brazing, soldering, and welding equipment, and cutting torches

related to manufacturing and construction activities that do not

result in emission of HAP metals. Brazing, soldering, and

welding equipment, and cutting torches related to manufacturing

and construction activities that emit HAP metals are insignificant

activities based on size or production level thresholds. Brazing,

soldering, and welding equipment, and cutting torches directly

related to plant maintenance and upkeep and repair or

maintenance shop activities that emit HAP metals are treated as

trivial and listed separately in this definition;

iv. Drop hammers or hydraulic presses for forging or metalworking;

v. Air compressors and pneumatically operated equipment,

including hand tools;

vi. Batteries and battery charging stations, except at battery

manufacturing plants;

vii. Drop hammers or hydraulic presses for forging or metalworking;

viii. Equipment used exclusively to slaughter animals, not including

other equipment at slaughterhouses, such as rendering cookers,

boilers, heating plants, incinerators, and electrical power

generating equipment;

ix. Hand-held applicator equipment for hot melt adhesives with no

VOC in the adhesive formulation;

x. Equipment used for surface coating, painting, dipping, or

spraying operations, except those that will emit VOC or HAP;

xi. CO2 lasers used only on metals and other materials that do not

emit HAP in the process;

xii. Electric or steam-heated drying ovens and autoclaves, but not the

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emissions from the articles or substances being processed in the

ovens or autoclaves or the boilers delivering the steam;

xiii. Salt baths using nonvolatile salts that do not result in emissions

of any regulated air pollutants;

xiv. Laser trimmers using dust collection to prevent fugitive

emissions;

xv. Process water filtration systems and demineralizers;

xvi. Demineralized water tanks and demineralizer vents;

xvii. Oxygen scavenging or de-aeration of water;

xviii. Ozone generators;

xix. Steam vents and safety relief valves;

xx. Steam leaks; and

xxi. Steam cleaning operations and steam sterilizers;

xxii. Use of vacuum trucks and high pressure washer/cleaning

equipment within the stationary source boundaries for cleanup

and in-source transfer of liquids and slurried solids to waste

water treatment units or conveyances;

xxiii. Equipment using water, water and soap or detergent, or a

suspension of abrasives in water for purposes of cleaning or

finishing.

xxiv. Electric motors.

c. Building and Site Maintenance Activities

i. Plant and building maintenance and upkeep activities, including

grounds-keeping, general repairs, cleaning, painting, welding,

plumbing, re-tarring roofs, installing insulation, and paving

parking lots, if these activities are not conducted as part of a

manufacturing process, are not related to the source’s primary

business activity, and do not otherwise trigger a permit revision.

Cleaning and painting activities qualify as trivial activities if

they are not subject to VOC or hazardous air pollutant control

requirements;

ii. Repair or maintenance shop activities not related to the source’s

primary business activity, not including emissions from surface

coating, de-greasing, or solvent metal cleaning activities, and not

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otherwise triggering a permit revision;

iii. Janitorial services and consumer use of janitorial products;

iv. Landscaping activities;

v. Routine calibration and maintenance of laboratory equipment or

other analytical instruments;

vi. Sanding of streets and roads to abate traffic hazards caused by

ice and snow;

vii. Street and parking lot striping;

viii. Caulking operations which are not part of a production process.

d. Incidental, Non-Industrial Activities

i. Air-conditioning units used for human comfort that do not have

applicable requirements under Title VI of the Act;

ii. Ventilating units used for human comfort that do not exhaust air

pollutants into the ambient air from any manufacturing,

industrial or commercial process;

iii. Tobacco smoking rooms and areas;

iv. Non-commercial food preparation;

v. General office activities, such as paper shredding, copying,

photographic activities, pencil sharpening and blueprinting, but

not including incineration;

vi. Laundry activities, except for dry-cleaning and steam boilers;

vii. Bathroom and toilet vent emissions;

viii. Fugitive emissions related to movement of passenger vehicles, if

the emissions are not counted for applicability purposes under

subsection (144)(c) (146)(c) of the definition of major source in

this Section and any required fugitive dust control plan or its

equivalent is submitted with the application;

ix. Use of consumer products, including hazardous substances as

that term is defined in the Federal Hazardous Substances Act (15

U.S.C. 1261 et seq.) where the product is used at a source in the

same manner as normal consumer use;

x. Activities directly used in the diagnosis and treatment of disease,

injury or other medical condition;

xi. Circuit breakers;

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xii. Adhesive use which is not related to production.

e. Storage, Piping and Packaging

i. Storage tanks, vessels, and containers holding or storing liquid

substances that will not emit any VOC or HAP;

ii. Storage tanks, reservoirs, and pumping and handling equipment

of any size containing soaps, vegetable oil, grease, animal fat,

and nonvolatile aqueous salt solutions, if appropriate lids and

covers are used;

iii. Chemical storage associated with water and wastewater

treatment where the water is treated for consumption and/or use

within the permitted facility;

iv. Chemical storage associated with water and wastewater

treatment where the water is treated for consumption and/or use

within the permitted facility;

v. Storage cabinets for flammable products;

vi. Natural gas pressure regulator vents, excluding venting at oil and

gas production facilities;

vii. Equipment used to mix and package soaps, vegetable oil, grease,

animal fat, and nonvolatile aqueous salt solutions, if appropriate

lids and covers are used;

f. Sampling and Testing

i. Vents from continuous emissions monitors and other analyzers;

ii. Bench-scale laboratory equipment used for physical or chemical

analysis, but not laboratory fume hoods or vents;

iii. Equipment used for quality control, quality assurance, or

inspection purposes, including sampling equipment used to

withdraw materials for analysis;

iv. Hydraulic and hydrostatic testing equipment;

v. Environmental chambers not using HAP gases;

vi. Soil gas sampling;

vii. Individual sampling points, analyzers, and process

instrumentation, whose operation may result in emissions but

that are not regulated as emission units;

g. Safety Activities

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i. Fire suppression systems;

ii. Emergency road flares;

h. Miscellaneous Activities

i. Shock chambers;

ii. Humidity chambers;

iii. Solar simulators;

iv. Cathodic protection systems;

v. High voltage induced corona; and

vi. Filter draining.

145147. “Unclassified area” means an area which the Administrator, because of a lack of

adequate data, is unable to classify as an attainment or nonattainment area for a

specific pollutant, and which, for purposes of this Chapter, is treated as an

attainment area.

146148. “Uncombined water” means condensed water containing analytical trace amounts

of other chemical elements or compounds.

147149. “Urban or suburban open area” means an unsubdivided tract of land surrounding

a substantial urban development of a residential, industrial, or commercial nature

and which, though near or within the limits of a city or town, may be

uncultivated, used for agriculture, or lie fallow.

148150. “Vacant lot” means a subdivided residential or commercial lot which contains no

buildings or structures of a temporary or permanent nature.

149151. “Vapor” means the gaseous form of a substance normally occurring in a liquid or

solid state.

150152. “Visibility impairment” means any humanly perceptible change in visibility

(light extinction, visual range, contrast, coloration) from that which would have

existed under natural conditions.

151153. “Visible emissions” means any emissions which are visually detectable without

the aid of instruments and which contain particulate matter.

152154. “Volatile organic compounds” or “VOC” means any compound of carbon,

excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or

carbonates, and ammonium carbonate, that participates in atmospheric

photochemical reactions. This includes any such organic compound other than

the following:

a. Methane;

Page 39 of 153


b. Ethane;

c. Methylene chloride (dichloromethane);

d. 1,1,1-trichloroethane (methyl chloroform);

e. 1,1,2-trichloro-1,2,2-trifluoroethane (CFC-113);

f. Trichlorofluoromethane (CFC-11);

g. Dichlorodifluoromethane (CFC-12);

h. Chlorodifluoromethane (HCFC-22);

i. Trifluoromethane (HFC-23);

j. 1,2-dichloro 1,1,2,2-tetrafluoroethane (CFC-114);

k. Chloropentafluoroethane (CFC-115);

l. 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123);

m. 1,1,1,2-tetrafluoroethane (HFC-134a);

n. 1,1-dichloro 1-fluoroethane (HCFC-141b);

o. 1-chloro 1,1-difluoroethane (HCFC-142b);

p. 2-chloro-1,1,1,2-tetrafluoroethane (HCFC-124);

q. Pentafluoroethane (HFC-125);

r. 1,1,2,2-tetrafluoroethane (HFC-134);

s. 1,1,1-trifluoroethane (HFC-143a);

t. 1,1-difluoroethane (HFC-152a);

u. Parachlorobenzotrifluoride (PCBTF);

v. Cyclic, branched, or linear completely methylated siloxanes;

w. Acetone;

x. Perchloroethylene (tetrachloroethylene);

y. 3,3-dichloro-1,1,1,2,2-pentafluoropropane (HCFC-225ca);

z. 1,3-dichloro-1,1,2,2,3-pentafluoropropane (HCFC-225cb);

aa. 1,1,1,2,3,4,4,5,5,5-decafluoropentane (HFC 43-10mee);

bb. Difluoromethane (HFC-32);

cc. Ethylfluoride (HFC-161);

dd. 1,1,1,3,3,3-hexafluoropropane (HFC-236fa);

ee. 1,1,2,2,3-pentafluoropropane (HFC-245ca);

ff. 1,1,2,3,3-pentafluoropropane (HFC-245ea);

gg. 1,1,1,2,3-pentafluoropropane (HFC-245eb);

hh. 1,1,1,3,3-pentafluoropropane (HFC-245fa);

ii. 1,1,1,2,3,3-hexafluoropropane (HFC-236ea);

Page 40 of 153


jj. 1,1,1,3,3-pentafluorobutane (HFC-365mfc);

kk. Chlorofluoromethane (HCFC-31);

ll. 1 chloro-1-fluoroethane (HCFC-151a);

mm. 1,2-dichloro-1,1,2-trifluoroethane (HCFC-123a);

nn. 1,1,1,2,2,3,3,4,4-nonafluoro-4-methoxy-butane (C4F9OCH3);

oo. 2-(difluoromethoxymethyl)-1,1,1,2,3,3,3-heptafluoropropane

((CF3)2CFCF2OCH3);

pp. 1-ethoxy-1,1,2,2,3,3,4,4,4-nonafluorobutane (C4F9OC2H5);

qq. 2-(ethoxydifluoromethyl)-1,1,1,2,3,3,3-heptafluoropropane

((CF3)2CFCF2OC2H5;

rr. Methyl acetate; and

ss. 1,1,1,2,2,3,3-heptafluoro-3-methoxypropane (n-C3F7OCH3, HFE—

7000);

tt. 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-dodecafluoro-2-(trifluoromethyl) hexane

(HFE – 7500);

uu. 1,1,1,2,3,3,3-hentafluoropropane (HFC 227ea);

vv. Methyl formate (HCOOCH3): and

ww. (1) 1,1,1,2,2,3,4,5,5,5-decafluoro-3-methoxy-4-trifluoromethyl-pentane

(HFE–7300);

xx. Propylene carbonate;

yy. Dimethyl carbonate; and

zz. Trans -1,3,3,3-tetrafluoropropene;

aaa. HCF2OCF2H (HFE-134);

bbb. HCF2OCF2OCF2H (HFE-236cal2);

ccc. HCF2OCF2CF2OCF2H (HFE-338pcc13);

ddd. HCF2OCF2OCF2CF2OCF2H (H-Galden 1040x or H-Galden ZT 130

(or 150 or 180));

eee. Trans 1-chloro-3,3,3- trifluoroprop-1-ene;

fff. 2,3,3,3-tetrafluoropropene;

ggg. 2-amino-2-methyl-1-propanol; and

hhh. Perfluorocarbon compounds that fall into these classes:

i. Cyclic, branched, or linear, completely fluorinated alkanes.

ii. Cyclic, branched, or linear, completely fluorinated ethers with no

unsaturations.

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iii. Cycle, branched, or linear, completely fluorinated tertiary amines

with no unsaturations; or

iv. Sulfur containing perfluorocarbons with no unsaturations and

with sulfur bonds only to carbon and fluorine.

aaaiii. The following compound is VOC for purposes of all recordkeeping,

emissions reporting, photochemical dispersion modeling and inventory

requirements which apply to VOC and shall be uniquely identified in

emission reports, but are is not VOC for purposes of VOC emissions

limitations or VOC content requirements: t-butyl acetate.

153155. “Wood waste burner” means an incinerator designed and used exclusively for the

burning of wood wastes consisting of wood slabs, scraps, shavings, barks,

sawdust or other wood material, including those that generate steam as a by-

product.

R18-2-102. Incorporated Materials

A. The following documents are incorporated by reference and are on file with the Office of

the Secretary of State (1700 W. Washington St., Suite 103, Phoenix, AZ 85007) and the

Department (1110 W. Washington St., Phoenix, AZ 85007):

1. Sections 1 and 7 of the Department’s “Arizona Testing Manual for Air Pollutant

Emissions,” amended as of March 1992 (and no future editions).

2. All ASTM test methods referenced in this Chapter as of the year specified in the

reference (and no future amendments). They are available from the American

Society for Testing and Materials, 1916 Race St., Philadelphia, PA 19103-1187.

3. The U.S. Government Printing Office’s “Standard Industrial Classification

Manual, 1987” (and no future editions).

B. The Code of Federal Regulations is published by the United States Government

Printing Office, 732 North Capital Street, NW, Washington, DC 20401-0001, is on

file with the Department of Environmental Quality, 1110 West Washington Street,

Phoenix, Arizona 85007, and is available at the Arizona State Library, Archives &

Public Records, 1700 West Washington Street, Phoenix, Arizona 85007 and at other

Federal depositary libraries in the state (see

http://catalog.gpo.gov/fdlpdir/FDLPdir.jsp?st_12=AZ&flag=searchp). It is also

available online at

http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR.

Page 42 of 153


ARTICLE 2. AMBIENT AIR QUALITY STANDARDS; AREA DESIGNATIONS; CLASSIFICATIONS

R18-2-201. Particulate Matter: PM10 and PM2.5

A. PM10 Standards

1. The level of the primary and secondary ambient air quality standards for PM10 is

150 micrograms per cubic meter of PM10 – 24-hour average concentration.

2. To determine attainment of the primary and secondary standards, a person shall

measure PM10 in the ambient air by:

a. A reference method based on 40 CFR 50, Appendix J, and designated

according to 40 CFR 53; or

b. An equivalent method designated according to 40 CFR 53.

3. The primary and secondary 24-hour ambient air quality standards for PM10 are

attained when the expected number of days per calendar year with a 24-hour

average concentration above 150 micrograms per cubic meter, determined

according to 40 CFR 50, Appendix K, is less than or equal to one.

B. PM2.5 Standards

1. The primary ambient air quality standards for PM2.5 are:

a. 15 12 micrograms per cubic meter of PM2.5 – annual arithmetic mean

concentration.

b. 35 micrograms per cubic meter of PM2.5 – 24-hour average

concentration.

2. The secondary ambient air quality standards for PM2.5 are:

a. 15 micrograms per cubic meter of PM2.5 – annual arithmetic mean

concentration.

b. 35 micrograms per cubic meter of PM2.5 – 24-hour average

concentration.

3. To determine attainment of the primary and secondary standards, a person shall

measure PM2.5 in the ambient air by:

a. A reference method based on 40 CFR 50, Appendix L, and designated

according to 40 CFR 53; or

b. An equivalent method designated according to 40 CFR 53.

4. The primary and secondary annual ambient air quality standardsstandard for

PM2.5 areis met when the annual arithmetic mean concentration, determined

according to 40 CFR 50, Appendix N, is less than or equal to 15 12 micrograms

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per cubic meter.

5. The secondary annual ambient air quality standard for PM2.5 is met when

the annual arithmetic mean concentration, determined according to 40 CFR

50, Appendix N, is less than or equal to 15 micrograms per cubic meter.

56. The primary and secondary 24-hour ambient air quality standards for PM2.5 are

met when the 98th percentile 24-hour concentration, determined according to 40

CFR 50, Appendix N, is less than or equal to 35 micrograms per cubic meter.

R18-2-217. Designation and Classification of Attainment Areas

A. All attainment and unclassified areas or parts thereof shall be classified as either Class

I, Class II or Class III.

B. All of the following areas which were in existence on August 7, 1977, including any

boundary changes to those areas which occurred subsequent to the date of

enactment of the Clean Air Act Amendments of 1977 and before March 12, 1993,

shall be Class I areas irrespective of attainment status and shall not be redesignated:

1. International parks;

2. National wilderness areas which exceed 5,000 acres in size;

3. National memorial parks which exceed 5,000 acres in size; and

4. National parks which exceed 6,000 acres in size.

C. Areas which were redesignated as Class I under regulations promulgated before

August 7, 1977, shall remain Class I, but may be redesignated as provided in this

section.

D. Any other area , unless otherwise specified in the legislation creating such an area, is

initially designated Class II, but may be redesignated as provided in this Section.

CE. The following areas shall be designated only as Class I or II:

1. An area which as of August 7, 1977, exceeds 10,000 acres in size and is one of

the following:

a. A national monument,

b. A national primitive area,

c. A national preserve,

d. A national recreational area,

e. A national wild and scenic river,

f. A national wildlife refuge,

g. A national lakeshore or seashore.

2. A national park or national wilderness area established after August 7, 1977,

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which exceeds 10,000 acres in size.

D. All other areas shall be Class II areas unless redesignated under subsections (E) or

(F).

EF. Except as otherwise provided in subsections (B) to (E), the The Governor or the

Governor’s designee may redesignate areas of the state as Class I or Class II, provided

that the following requirements are fulfilled:

1. At least one public hearing is held in or near the area affected in accordance

with 40 CFR 51.102;

2. Other states, Indian governing bodies and Federal Land Managers, whose land

may be affected by the proposed redesignation are notified at least 30 days prior

to the public hearing.

3. A discussion document of the reasons for the proposed redesignation including a

description and analysis of health, environmental, economic, social and energy

effects of the proposed redesignation is prepared by the Governor or the

Governor’s designee. The discussion document shall be made available for

public inspection at least 30 days prior to the hearing and the notice announcing

the hearing shall contain appropriate notification of the availability of such

discussion document.

4. Prior to the issuance of notice respecting the redesignation of an area which

includes any federal lands, the Governor or the Governor’s designee has provided

written notice to the appropriate Federal Land Manager and afforded the Federal

Land Manager adequate opportunity, not in excess of 60 days, to confer with the

state respecting the redesignation and to submit written comments and

recommendations. The Governor or the Governor’s designee shall publish a list

of any inconsistency between such redesignation and such recommendations,

together with the reasons for making such redesignation against the

recommendation of the Federal Land Manager, if any Federal Land Manager has

submitted written comments and recommendations.

5. The redesignation is proposed after consultation with the elected leadership of

local governments in the area covered by the proposed redesignation.

6. The redesignation is submitted to the Administrator as a revision to the SIP.

FG. Except as otherwise provided in subsections (B) to (E), theThe Governor or the

Governor’s designee may redesignate areas of the state as Class III if all of the

following criteria are met:

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1. Such redesignation meets the requirements of subsection (E)(F);

2. Such redesignation has been approved after consultation with the appropriate

committee of the legislature if it is in session or with the leadership of the

legislature if it is not in session.

3. The general purpose units of local government representing a majority of the

residents of the area to be redesignated concur in the redesignation;

4. Such redesignation shall not cause, or contribute to, a concentration of any air

pollutant which exceeds any national ambient air quality standard or any

maximum allowable increase or maximum allowable concentration permitted

under the classification of any area allowed under R18-2-218;

5. For any new major source as defined in R18-2-401 or a major modification of

such source which may be permitted to be constructed and operated only if the

area in question is redesignated as Class III, any permit application or related

and materials submitted as part of the application shall be made available for

public inspection prior to a any public hearing on the redesignation of the area

as Class III.

6. The redesignation is submitted to the Administrator as a revision to the SIP.

GH. A redesignation shall not be effective until approved by the Administrator as part of an

applicable implementation plan. If the Administrator disapproves the redesignation,

the classification of the area shall be that which was in effect before the disapproved

redesignation.

HI. Lands within the exterior boundaries of Indian reservations may be redesignated only by

the appropriate Indian governing body.

R18-2-218. Limitation of Pollutants in Classified Attainment Areas

A. Areas designated as Class I, II, or III shall be limited to the following increases in air

pollutant concentrations occurring over the baseline concentration; provided that for any

period other than an annual period, the applicable maximum allowable increase may be

exceeded once per year at any one location:

CLASS I

Maximum Allowable

Increase (Micrograms

per cubic meter)

Particulate matter: PM2.5

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Annual arithmetic mean 1

24-hr maximum 2

Particulate matter: PM10


24-hour maximum 8

Sulfur dioxide:


24-hour maximum 5

3-hour maximum 25

Nitrogen dioxide:

Annual arithmetic mean 2.5

CLASS II



24-hr maximum 9



24-hour maximum 30

Sulfur dioxide:


24-hour maximum 91

3-hour maximum 512

Nitrogen dioxide:


CLASS III



24-hr maximum 18

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24-hour maximum 60

Sulfur dioxide:


24-hour maximum 182

3-hour maximum 700

Nitrogen dioxide:


B. The baseline concentration shall be is that ambient concentration level which exists in

the baseline area at the time of the applicable minor source baseline data.

1. The major source baseline date is:

a. January 6, 1975, for sulfur dioxide and PM10.

b. February 8, 1988, for nitrogen dioxide.

c. October 20, 2010, for PM2.5.

2. The minor source baseline date shall be the earliest date after the trigger date on

which a major source as defined in R18-2-401 or major modification subject to

40 CFR 52.21 or R18-2-406 submits a complete application under the relevant

regulations.

a. The trigger date is:

ai. August 7, 1977, for PM10 and sulfur dioxide.

bii. February 8, 1988, for nitrogen dioxide.

ciii. October 20, 2011, for PM2.5.

b. Any minor source baseline date established originally for total

suspended particulates shall remain in effect and shall apply for

purposes of determining the amount of available PM-10 increments,

except that the Department may rescind any such minor source

baseline date where it can be shown, to the satisfaction of the

Department, that the emissions increase from the major source, or

the net emissions increase from the major modification, responsible

for triggering that date did not result in a significant amount of PM-

10 emissions.

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3. A baseline concentration shall be determined for each pollutant for which there is

a minor source baseline date and shall include both:

a. The actual emissions representative of sources in existence on the minor

source baseline date, except as provided in subsection (B)(4); and

b. The allowable emissions of major sources as defined in R18-2-401 which

commenced construction before the major source baseline date but were

not in operation by the applicable minor source baseline date.

4. The following shall not be included in the baseline concentration and shall affect

the applicable maximum allowable increase:

a. Actual emissions from any major source as defined in R18-2-401 on

which construction commenced after the major source baseline date; and

b. Actual emissions increases and decreases at any stationary source

occurring after the minor source baseline date.

C. The baseline date shall be established for each pollutant for which maximum allowable

increases or other equivalent measures have been established if both:

1. The area in which the proposed source or modification would construct is

designated as attainment or unclassifiable under section 107(d)(1)(A)(ii) or (iii)

of the Act for the pollutant on the date of its complete application under 40 CFR

52.21 or R18-2-406; and

2. In the case of a major source as defined in R18-2-401, the pollutant would be

emitted in significant amounts, or in the case of a major modification, there

would be a significant net emissions increase of the pollutant.

D. The baseline area shall be the AQCR that contains the area, designated as attainment or

unclassifiable under section 107(d)(1)(A)(ii) or (iii) of the Act, in which the major source

as defined in R18-2-401 or major modification establishing the minor source baseline

date would construct or would have an air quality impact for the pollutant for which the

minor source baseline date is established, as follows: greater than or equal to 1

microgram per cubic meter (annual average) for sulfur dioxide, nitrogen dioxide or PM10;

or greater than or equal to 0.3 microgram per cubic meter (annual average) for PM2.5.

1. Area redesignations under R18-2-217 section 107(d)(1)(A)(ii) or (iii) of the Act

that would redesignate a baseline area may not intersect or be smaller than the

area of impact of any new major source as defined in R18-2-401 or a major

modification which either:

1a. Establishes a minor source baseline date, or

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2b. Is subject to either 40 CFR 52.21 or R18-2-406 and would be constructed

in Arizona.

2. Any baseline area established originally for total suspended particulates

shall remain in effect and shall apply for purposes of determining the

amount of available PM–10 increments, except that such baseline area shall

not remain in effect if the Department rescinds the corresponding minor

source baseline date in accordance with subsection (B)(2)(b).

E. The maximum allowable concentration of any air pollutant in any area to which

subsection (A) applies shall not exceed a concentration for each pollutant equal to the

concentration permitted under the national ambient air quality standards contained in

this Article.

F. For purposes of determining compliance with the maximum allowable increases in

ambient concentrations of an air pollutant, the following concentrations of such pollutant

shall not be taken into account:

1. Concentration of such pollutant attributable to the increase in emissions from

major and stationary sources which have converted from the use of petroleum

products, or natural gas, or both, by reason of a natural gas curtailment order

which is in effect under the provisions of sections 2(a) and (b) of the Energy

Supply and Environmental Coordination Act of 1974, 15 U.S.C. 792, over the

emissions from such sources before the effective date of such order;

2. The concentration of such pollutant attributable to the increase in emissions from

major and stationary sources which have converted from using gas by reason of a

natural gas curtailment plan in effect pursuant to the Federal Power Act, 16

U.S.C. 792 - 825r, over the emissions from such sources before the effective date

of the natural gas curtailment plan;

3. Concentrations of PM10 or PM2.5 attributable to the increase in emissions from

construction or other temporary emission related activities of a new or modified

source;

4. The increase in concentrations attributable to new sources outside the United

States over the concentrations attributable to existing sources which are included

in the baseline concentration; and

5. Concentrations attributable to the temporary increase in emissions of sulfur

dioxide, nitrogen oxides, PM2.5, or PM10 from major sources as defined in R18-2-

401 when the following conditions are met:

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a. The operating permit permits issued to such sources specifies specify

the time period during which the temporary emissions increase of sulfur

dioxide, nitrogen oxides, PM2.5 or PM10 would occur. Such time period

shall not be renewable and shall not exceed two years unless a longer

period is specifically approved by the Director.

b. No emissions increase shall be approved which would either The

temporary emissions increase will not:

i. Impact any portion of any Class I area or any portion of any

other area where an applicable incremental ambient standard

a maximum increase allowed by subsection (A) is known to be

violated in that portion; or

ii. Cause or contribute to the violation of a state national ambient

air quality standard.

c. The operating permit issued to such sources specifies that, at the end of

the time period described in subsection (F)(5)(a), the emissions levels

from the sources would not exceed the levels occurring before the

temporary emissions increase was approved.

6. The exception granted by subsections (F)(1) and (2) with respect to increment

consumption under subsections (F)(1) and (2) maximum increases allowed

under subsection (A) shall not apply more than five years after the effective date

of the order or natural gas curtailment plan on which the exception is based.

G. If the Director or the Administrator determines that the SIP is substantially inadequate to

prevent significant deterioration or that an applicable maximum allowable increase as

specified in subsection (A) is being violated, the SIP shall be revised to correct the

inadequacy or the violation. The SIP shall be revised within 60 days of such a finding by

the Director or within 60 days following notification by the Administrator, or by such

later date as prescribed by the Administrator after consultation with the Director.

H. The Director shall review the adequacy of the SIP on a periodic basis and within 60 days

of such time as information becomes available that an applicable maximum allowable

increase is being violated.

ARTICLE 3. PERMITS AND PERMIT REVISIONS


The following definitions apply to this Article:

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1. “Alternative method” means any method of sampling and analyzing for an air

pollutant which is not a reference or equivalent method but which has been

demonstrated to produce results adequate for the Director’s determination of

compliance in accordance with R18-2-311(D).

2. “Billable permit action” means the issuance or denial of a new permit, significant

permit revision, or minor permit revision, or the renewal of an existing permit.

3. “Capacity factor” means the ratio of the average load on a machine or equipment

for the period of time considered to the capacity rating of the machine or

equipment.

4. “CEM” means a continuous emission monitoring system as defined in R18-2-

101.

5. “Complete” means, in reference to an application for a permit, permit revision or

registration, that the application contains all the information necessary for

processing the application. Designating an application complete for purposes of a

permit, permit revisions or registration processing does not preclude the Director

from requesting or accepting any additional information.

6. “Dispersion technique” means any technique which attempts to affect the

concentration of a pollutant in the ambient air by any of the following:

a. Using that portion of a stack which exceeds good engineering practice

stack height;

b. Varying the rate of emission of a pollutant according to atmospheric

conditions or ambient concentrations of that pollutant; or

c. Increasing final exhaust gas plume rise by manipulating source process

parameters, exhaust gas parameters, stack parameters, or combining

exhaust gases from several existing stacks into one stack; or other

selective handling of exhaust gas streams so as to increase the exhaust

gas plume rise. This shall not include any of the following:

i. The reheating of a gas stream, following use of a pollution

control system, for the purpose of returning the gas to the

temperature at which it was originally discharged from the

facility generating the gas stream.

ii. The merging of exhaust gas streams under any of the following

conditions:

(1) The source owner or operator demonstrates that the

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facility was originally designed and constructed with

such merged gas streams;

(2) After July 8 18, 1985, such merging is part of a change

in operation at the facility that includes the installation

of pollution controls and is accompanied by a net

reduction in the allowable emissions of a pollutant,

applying only to the emission limitation for that

pollutant; or

(3) Before July 8, 1985, such merging was part of a change

in operation at the facility that included the installation

of emissions control equipment or was carried out for

sound economic or engineering reasons. Where there

was an increase in the emission limitation or, in the

event that no emission limitation was in existence prior

to the merging, an increase in the quantity of pollutants

actually emitted prior to the merging, the reviewing

agency shall presume that merging was significantly

motivated by an intent to gain emissions credit for

greater dispersion. Absent a demonstration by the source

owner or operator that merging was not significantly

motivated by such intent, the reviewing agency shall

deny credit for the effects of such merging in calculating

the allowable emissions for the source.

iii. Smoke management in agricultural or silvicultural prescribed

burning programs.

iv. Episodic restrictions on residential woodburning and open

burning.

v. Techniques which increase final exhaust gas plume rise where

the resulting allowable emissions of sulfur dioxide from the

facility do not exceed 5,000 tons per year.

7. “Emissions allowable under the permit” means a permit term or condition

determined at issuance to be required by an applicable requirement that

establishes an emissions limit (including a work practice standard) or an

emissions cap that the source has assumed to avoid an applicable requirement to

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which the source would otherwise be subject.

8. “Fossil fuel-fired steam generator” means a furnace or boiler used in the process

of burning fossil fuel for the primary purpose of producing steam by heat

transfer.

9. “Fuel oil” means Number 2 through Number 6 fuel oils as specified in ASTM D-

396-90a (Specification for Fuel Oils), gas turbine fuel oils Numbers 2-GT

through 4-GT as specified in ASTM D-2880-90a (Specification for Gas Turbine

Fuel Oils), or diesel fuel oils Numbers 2-D and 4-D as specified in ASTM D-

975-90a (Specification for Diesel Fuel Oils).

10. “Itemized bill” means a breakdown of the permit processing time into the

categories of pre-application activities, completeness review, substantive review,

and public involvement activities, and within each category, a further breakdown

by employee name.

11. “Major source threshold” means the lowest applicable emissions rate for a

pollutant that would cause the source to be a major source at the particular time

and location, under the definition of major source in R18-2-101.

12. “Maximum capacity to emit” means the maximum amount a source is

capable of emitting under its physical and operational design without taking

any limitations on operations or air pollution controls into account.

13. “Maximum capacity to emit with elective limits” means the maximum

amount a source is capable of emitting under its physical and operational

design taking into account the effect on emissions of any elective limits

included in the source’s registration under R18-2-302.01(F).

1214. “Minor NSR Modification” means any of the following changes that do not

qualify as a major source or major modification:

a. Any physical change in or change in the method of operation of an

emission unit or a stationary source that either:

i. Increases the potential to emit of a regulated minor NSR

pollutant by an amount greater than the permitting exemption

thresholds, or

ii. Results in emissions of a regulated minor NSR pollutant not

previously emitted by such emission unit or stationary source in

an amount greater than the permitting exemption thresholds.

b. Construction of one or more new emissions units that have the potential

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to emit regulated minor NSR pollutants at an amount greater than the

permitting exemption threshold.

c. A change covered by subsection (12)(a) or (b) of this Section constitutes

a minor NSR modification regardless of whether there will be a net

decrease in total source emissions or a net increase in total source

emissions that is less than the permitting exemption threshold as a result

of decreases in the potential to emit of other emission units at the same

stationary source.

d. For the purposes of this subsection the following do not constitute a

physical change or change in the method of operation:

i. A change consisting solely of the construction of, or changes to,

a combination of emissions units qualifying as a categorically

exempt activity.

ii. For a stationary source that is required to obtain a Class II permit

under R18-2-302 and that is subject to source-wide emissions

caps under R18-2-306.01 or R18-2-306.02, a change that will not

result in the violation of the existing emissions cap for that

regulated minor NSR pollutant.

iii. Replacement of an emission unit by a unit with a potential to

emit regulated minor NSR pollutants that is less than or equal to

the potential to emit of the existing unit, provided the

replacement does not cause an increase in emissions at other

emission units at the stationary source. A unit installed under this

provision is subject to any limits applicable to the unit it

replaced.

iv. Routine maintenance, repair, and replacement.

v. Use of an alternative fuel or raw material by reason of an order

under Sections 2(a) and (b) of the Energy Supply and

Environmental Coordination Act of 1974, 15 U.S.C. 792, or by

reason of a natural gas curtailment plan under the Federal Power

Act, 16 U.S.C. 792 to 825r.

vi. Use of an alternative fuel by reason of an order or rule under

Section 125 of the Act.

vii. Use of an alternative fuel at a steam generating unit to the extent

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that the fuel is generated from municipal solid waste.

viii. Use of an alternative fuel or raw material by a stationary source

that either:

(1) The source was capable of accommodating before

December 12, 1976, unless the change would be


condition established after December 12, 1976, under 40

CFR 52.21, or under Articles 3 or 4 of this Chapter; or

(2) The source is approved to use under any permit issued

under 40 CFR 52.21, or under Articles 3 or 4 of this

Chapter.

ix. An increase in the hours of operation or in the production rate,

unless the change would be prohibited under any federally

enforceable permit condition established after December 12,

1976, under 40 CFR 52.21, or under Articles 3 or 4 of this

Chapter.

x. Any change in ownership at a stationary source

xi. The installation, operation, cessation, or removal of a temporary

clean coal technology demonstration project, if the project

complies with:

(1) The SIP, and

(2) Other requirements necessary to attain and maintain the

national ambient air quality standards during the project

and after it is terminated.

xii. For electric utility steam generating units located in attainment

and unclassifiable areas only, the installation or operation of a

permanent clean coal technology demonstration project that

constitutes repowering, if the project does not result in an

increase in the potential to emit any regulated pollutant emitted

by the unit. This exemption applies on a pollutant-by-pollutant

basis.

xiii. For electric utility steam generating units located in attainment

and unclassifiable areas only, the reactivation of a very clean

coal-fired electric utility steam generating unit.

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e. For purposes of this subsection:

i. “Potential to emit” means the lower of a source’s or emission

unit’s potential to emit or its allowable emissions.

ii. In determining potential to emit, the fugitive emissions of a

stationary source shall not be considered unless the source

belongs to a section 302(j) category.

iii. All of the roadways located at a stationary source constitute a

single emissions unit.

1315. “NAICS” means the five- or six-digit North American Industry Classification

System-United States, 1997, number for industries used by the U.S. Department

of Commerce.

1416. “Permit processing time” means all time spent by Air Quality Division staff or

consultants on tasks specifically related to the processing of an application for the

issuance or renewal of a particular permit or permit revision, including time spent

processing an application that is denied.

1517. “Quantifiable” means, with respect to emissions, including the emissions

involved in equivalent emission limits and emission trades, capable of being

measured or otherwise determined in terms of quantity and assessed in terms of

character. Quantification may be based on emission factors, stack tests,

monitored values, operating rates and averaging times, materials used in a

process or production, modeling, or other reasonable measurement practices.

1618. “Registration” means a registration under R18-2-302.01.

1719. “Replicable” means, with respect to methods or procedures, sufficiently

unambiguous that the same or equivalent results would be obtained by the

application of the method or procedure by different users.

1820. “Responsible official” means one of the following:

a. For a corporation: a president, secretary, treasurer, or vice-president of

the corporation in charge of a principal business function, or any other

person who performs similar policy or decision-making functions for the

corporation, or a duly authorized representative of such person if the

representative is responsible for the overall operation of one or more

manufacturing, production, or operating facilities applying for or subject

to a permit and either:

i. The facilities employ more than 250 persons or have gross

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annual sales or expenditures exceeding $25 million (in second

quarter 1980 dollars); or

ii. The delegation of authority to such representatives is approved

in advance by the permitting authority;

b. For a partnership or sole proprietorship: a general partner or the

proprietor, respectively;

c. For a municipality, state, federal, or other public agency: Either a

principal executive officer or ranking elected official. For the purposes of

this Article, a principal executive officer of a federal agency includes the

chief executive officer having responsibility for the overall operations of

a principal geographic unit of the agency (e.g., a Regional Administrator

of EPA); or

d. For affected sources:

i. The designated representative in so far as actions, standards,

requirements, or prohibitions under Title IV of the Act or the

regulations promulgated thereunder are concerned; and

ii. The designated representative for any other purposes under 40

CFR 70.

21. “Screening model” means air dispersion modeling performed with screening

techniques in accordance with 40 CFR 51 Appendix W.

1922. “Small source” means a source with a potential to emit, without controls, less

than the rate defined as permitting exemption thresholds in R18-2-101, but

required to obtain a permit solely because it is subject to a standard under 40

CFR 63.

2023. “Startup” means the setting in operation of a source for any purpose.

2124. “Synthetic minor” means a source with a permit that contains voluntarily

accepted emissions limitations, controls, or other requirements (for example, a

cap on production rates or hours of operation, or limits on the type of fuel) under

R18-2-306.01 to reduce the potential to emit to a level below the major source

threshold.

22. “Uncontrolled potential to emit” means the maximum capacity of a

stationary source to emit a pollutant, excluding secondary emissions, under

its physical and operational design. Any physical or operational limitation

on the capacity of the source to emit a pollutant, including air pollution

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control equipment and restrictions on hours of operation or on the type or

amount of material combusted, stored, or processed, shall be treated as part

of its design only if the limitation or the effect it would have on emissions is

subject to an elective limit under R18-2-302.01(F).

R18-2-302. Applicability; Registration; Classes of Permits

A. Except as otherwise provided in this Article, no person shall begin actual construction of,

operate, or make a modification to any stationary source subject to regulation under this

Article, without obtaining a registration, permit or permit revision from the Director.

B. Class I and II permits and registrations shall be required as follows:

1. A Class I permit shall be required for a person to begin actual construction of or

operate any of the following:

a. Any major source,

b. Any solid waste incineration unit required to obtain a permit pursuant to

Section 129(e) of the Act,

c. Any affected source, or

d. Any stationary source in a source category designated by the

Administrator pursuant to 40 CFR 70.3 and adopted by the Director by

rule.

2. Unless a Class I permit is required, a Class II permit shall be required for:

a. A person to begin actual construction of or operate any stationary source

that emits, or has the uncontrolled potential to emit maximum

capacity to emit with elective limits, significant quantities of regulated

NSR pollutants;

b. A person to make a physical or operational change to a stationary source

that would cause the source to emit, or have the uncontrolled potential

to emit maximum capacity to emit with elective limits significant

quantities of regulated NSR pollutants.

c. A person to begin actual construction of a source subject to Article

17 of this Chapter.

d. A person to make a modification subject to Article 17 of this Chapter

to a source for which a permit has not been issued under this Article.

ec. A person to begin actual construction of or modify a stationary source

that otherwise would be subject to registration but that the Director has

determined requires a permit under R18-2-302.01(B)(3)(b) R18-2-

Commented [SB8]: Eliminating references to unenforceable state HAPs program.

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302.01(C)(4) or (D).

3. Until the effective date of the Administrator’s approval of the registration

program in R18-2-302.01 into the state implementation plan, unless a Class I

permit is required, a Class II permit shall be required for any of the

activities that would require a registration under subsections (B)(4)(b) and

(c).

43. After the effective date of the Administrator’s approval of R18-2-302.01 into

the state implementation plan, unless Unless a Class I or II permit is required,

registration shall be required for:

a. A person to begin actual construction of or operate any stationary source

that emits or has the maximum capacity to emit under its physical and

operational design, without taking any limitations on operations or

air pollution controls into account, any regulated minor NSR pollutant

in an amount greater than or equal to a permitting exemption threshold.

b. A person to begin actual construction of or operate any stationary source

subject to a standard under section 111 of the Act, except that a

stationary source is not required to register solely because it is subject to

any of the following standards:

i. 40 CFR 60, Subpart AAA (Residential Wood Heaters).

ii. 40 CFR 60, Subpart IIII (Stationary Compression Ignition

Internal Combustion Engines).

iii. 40 CFR 60, Subpart JJJJ (Stationary Spark Ignition Internal

Combustion Engines).

c. A person to begin actual construction of or operate any stationary source,

including an area source, subject to a standard under section 112 of the

Act, except that a stationary source is not required to register solely

because it is subject to any of the following standards:

i. 40 CFR 61.145.

ii. 40 CFR 63, Subpart ZZZZ (Reciprocating Internal Combustion

Engines).

iii. 40 CFR 63, Subpart WWWWW (Ethylene Oxide Sterilizers).

iv. 40 CFR 63, Subpart CCCCCC (Gasoline Distribution).

v. 40 CFR 63, Subpart HHHHHH (Paint Stripping and

Miscellaneous Surface Coating Operations).

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vi. 40 CFR 63, Subpart JJJJJJ (Industrial, Commercial, and

Institutional Boilers Area Sources), published at 76 FR 15554

(March 21, 2011).

vii. A regulation or requirement under section 112(r) of the Act.

d. A physical or operational change to a source that would cause the source

to emit or have the maximum capacity to emit under its physical and

operational design, without taking any limitations on operations or

air pollution control into account, any regulated minor NSR pollutant

in excess of a in an amount greater than or equal to the permitting

exemption threshold.

C. Notwithstanding subsections (A) and (B), the following stationary sources do not require

a permit or registration unless the source is a major source, or unless operation without a

permit would result in a violation of the Act:

1. A stationary source that consists solely of a single categorically exempt activity

plus any combination of trivial activities.

2. Agricultural equipment used in normal farm operations. “Agricultural equipment

used in normal farm operations” does not include equipment classified as a

source that requires a permit under Title V of the Act, or that is subject to a

standard under 40 CFR 60, 61 or 63.

D. No person may construct or reconstruct any major source of hazardous air pollutants,

unless the Director determines that maximum achievable control technology emission

limitation (MACT) for new sources under Section 112 of the Act will be met. If MACT

has not been established by the Administrator, such determination shall be made on a

case-by-case basis pursuant to 40 CFR 63.40 through 63.44, as incorporated by reference

in R18-2-1101(B). For purposes of this subsection, constructing and reconstructing a

major source shall have the meaning prescribed in 40 CFR 63.41.

E. Elective limits or controls adopted under R18-2-302.01(F) shall not be considered in

determining whether a source requires registration or a Class I permit but shall be

considered in determining any of the following:

1. Whether the registration is subject to the public participation requirements of

R18-2-330, as provided in R18-2-302.01(B)(3)(a) R18-2-302.01(B)(3).

2. Whether review for possible interference with attainment or maintenance of

ambient standards is required under R18-2-302.01(C).

3. Whether the source requires a Class II permit, as provided in subsection (B)(2)(a)

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or (b).

F. The fugitive emissions of a stationary source shall not be considered in determining

whether the source requires a Class II permit under subsection (B)(2)(a) or (b) or a

registration under subsection (B)(4)(a) or (e) (B)(3)(a) or (d), unless the source belongs

to a section 302(j) category. If a permit is required for a stationary source, the fugitive

emissions of the source shall be subject to all of the requirements of this Article.

G. Notwithstanding subsections (A) and (B) of this Section, a person may begin actual

construction, but not operation, of a source requiring a Class I permit or Class I permit

revision upon the Director’s issuance of the proposed final permit or proposed final

permit revision.

R18-2-302.01. Source Registration Requirements

A. Application. An application for registration shall be submitted on the form specified by

the Director and shall include the following information:

1. The name of the applicant.

2. The physical location of the source, including the street address, city, county, zip

code and latitude and longitude coordinates.

3. The source’s uncontrolled potential to emit maximum capacity to emit with

elective limits each regulated minor NSR pollutant calculated in accordance

with R18-2-327(C).

4. Identification of any elective limits or controls adopted under subsection (F).

5. In the case of a modification, each increase in the source’s potential to emit that

exceeds the applicable threshold in subsection (G)(1)(a).

6. Identification of the method used to determine the potential to emit or change in

potential to emit specified under R18-2-302(B)(4)(a) R18-2-302(B)(3)(a) or (d)

or subsection (G)(1)(a) of this Section.

7. Process information for the source, including a list of emission units, design

capacity, operations schedule, and identification of emissions control devices.

B. Registration Processing Procedures.

1. The Department shall complete a review of a registration application for

administrative completeness within 30 calendar days, calculated in accordance

with A.A.C. R18-1-503, after its receipt.

2. The Department shall complete a substantive review and take final action on a

registration application within 60 calendar days if no hearing is requested, and 90

calendar days if a hearing is requested, calculated in accordance with A.A.C.

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R18-1-504, after the application is administratively complete.

3. Public Participation.

a. Except as provided in subsection (B)(3)(b) (B)(5), a registration for

construction of a source shall be subject to the public notice and

participation requirements of R18-2-330. The materials relevant to the

registration decision made available to the public under R18-2-

330(D)(11) R18-2-330(D) shall include any determination made or

modeling conducted by the Director under subsection (C).

4. A copy of the notice required by subsection (B)(3) shall also be sent to the

Administrator through the appropriate regional office, and to all other state

and local air pollution control agencies having jurisdiction in the region in

which the source subject to the permit or permit revision will be located.

The notice also shall be sent to any other agency in the region having

responsibility for implementing the procedures required under 40 CFR 51,

I.

b5. A registration for construction of a source shall not be subject to the public

notice and participation requirements of R18-2-330 subsection (B)(3) or (4),

if the source’s uncontrolled potential to emit maximum capacity to emit with

elective limits each regulated minor NSR pollutant is less than the applicable


C. Review for NAAQS National Ambient Air Quality Standards Compliance;

Requirement to Obtain a Permit.

1. The Director shall review each application for registration of a source with the

uncontrolled potential to emit maximum capacity to emit with elective limits

any regulated minor NSR pollutant in an amount equal to or greater than the

permitting exemption threshold. The purpose of the review shall be to determine

whether the new or modified source may interfere with attainment or

maintenance of a standard imposed in Article 2 of this Chapter national

ambient air quality standard in Arizona or any affected state. In making the

determination required by this subsection, the Director shall take into account the

following factors:

a. The source’s emission rates, including fugitive emission rates, taking

into account any elective limits or controls adopted under subsection (F).

b. The location of emission units within the facility and their proximity to

Commented [SB9]: Notice provisions required for minor NSR.

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the ambient air.

c. The terrain in which the source is or will be located.

d. The source type.

e. The location and emissions of nearby sources.

f. Background concentrations of regulated minor NSR pollutants.

2. The Director may undertake the review specified in subsection (C)(1) for a

source with the uncontrolled potential to emit maximum capacity to emit

with elective limits regulated minor NSR pollutants in an amount less than the


3. If the Director determines under subsection (C)(1) or (C)(2) that a source’s

emissions may interfere with attainment or maintenance of a standard imposed

in Article 2 of this Chapter national ambient air quality standard, the

Director shall perform a SCREEN screening model run for each regulated minor

NSR pollutant for which that determination has been made.

4. If the Director determines, based on performance of the SCREEN screening

model pursuant to subsection (C)(3), that a source’s emissions, taking into

account any elective limits or controls adopted under subsection (F), will

interfere with attainment or maintenance of a standard imposed in Article 2 of

this Chapter national ambient air quality standard, the Director shall deny

the application for registration. Notwithstanding R18-2-302(B)(4) R18-2-

302(B)(3), the owner or operator of the source shall be required to obtain a

permit under R18-2-302 and shall comply with R18-2-334 before beginning

actual construction of the source or modification.

D. Requirement to Obtain a Permit. Notwithstanding R18-2-302(B)(4)(b) R18-2-

302(B)(3)(b) and (c), the Director shall deny an application for registration for a source

subject to a standard under section 111 or 112 of the Act and require the owner or

operator to obtain a permit under R18-2-302, if the Director determines based on the

following factors that the requirement to obtain a permit is warranted:

1. The size and complexity of the source.

2. The complexity of the section 111 or 112 standard applicable to the source.

3. The public health or environmental risks posed by the pollutants subject to

regulation under the section 111 or 112 standard.

E. Registration Contents. A registration shall contain the following elements:

1. Identification of each emission unit subject to an applicable requirement and

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all applicable requirements that apply to the unit, including Enforceable

emission limitations and standards, including operational requirements and

limitations that ensure compliance with all SIP requirements at the time of

issuance and any testing, monitoring, recordkeeping and reporting obligations

imposed by the applicable requirement or by R18-2-312.

2. Any elective limits or controls and associated operating, maintenance,

monitoring and recordkeeping requirements adopted pursuant to subsection (F).

3. A requirement to retain any records required by the registration at the source for

at least three years in a form that is suitable for expeditious inspection and

review.

4. For any source that has adopted elective limits or controls under subsection (F), a

requirement to submit an annual compliance report on the form provided by the

Director in the registration.

F. Elective Limits or Controls. The owner or operator of a source requiring registration may

elect to include any of the following emission limitations in the registration, provided the

Department approves the limitation and the registration also includes the operating,

maintenance, monitoring, and recordkeeping requirements specified below for the

limitation.

1. A limitation on the hours of operation of any process or combination of

processes.

a. The registration shall express the limitation in terms of hours per

calendar month and shall specify the process or combination of

processes subject to the limitation.

b. The owner or operator shall maintain a log or readily available business

records showing actual operating hours through the preceding operating

day for the process or processes subject to the limitation and shall

update the log or business records at least once per operating day at

the end of the day.

2. A limitation on the production rate for any process or combination of processes.

a. The registration shall express the limitation in terms of an

appropriate unit of mass or production per calendar month and

shall specify the process or combination of processes subject to the

limitation.


Commented [SB10]: Added to address EPA comment that existing language was not adequate to insure that construction of source will not result in violation of applicable portions of control strategy.

Commented [SB11]: TSD 28-29 indicates that elective limits do not satisfy requirements for practical enforceability. We have amended the elective limit provisions to insure they are enforceable.

Page 65 of 153


records showing the actual production rate through the preceding

operating day for the process or processes subject to the limitation. The

owner or operator shall update the log or business records at least

once per operating day at the end of the day.

3. A requirement to operate a fabric filter for the control of particulate matter

emissions.

a. The owner or operator shall operate the fabric filter at all times that the

emission unit controlled by the fabric filter is operated.

b. The owner or operator shall inspect the fabric filter at least once per

month for tears and leaks and shall promptly repair any tears or leaks

identified.

c. The owner or operator shall operate and maintain the fabric filter in

substantial compliance with the manufacturer’s operation and

maintenance recommendations.

d. The owner or operator shall keep a log or readily available business

records of the inspections required by subsection (F)(3)(b) and the

maintenance activities required by subsection (F)(3)(c). The owner or

operator shall update the log or business records at the end of each

day that an inspection or maintenance activity is performed.

e. The registration shall identify the fabric filters and processes subject

to this requirement.

4. Limitations on the concentration total amount of VOC or hazardous air

pollutants in solvents, coatings or other process materials used at the

registered source.

a. The registration shall identify the pollutants and processes covered

by the limitations and shall express the limitations in terms of

pounds per month.


records showing the concentration of each covered VOC or hazardous

air pollutant concentration in each material used at the source subject

to such a limitation and the amounts of each material used during

the current calendar year. The owner or operator shall update the

records whenever the concentration in any material changes or a

new material is used. The presence at the source of a current MSDS

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for a material used without dilution or other alteration satisfies this

requirement.

c. The owner or operator shall maintain a spreadsheet or database to

record the amount of each material containing a covered VOC or

hazardous air pollutant used. The spreadsheet or database shall

calculate the total pounds of the VOC or hazardous air pollutant

used by multiplying the concentration of VOC or hazardous air

pollutant in a material by the amount of material used and shall

employ appropriate units of measurement and conversion factors.

The owner or operator shall update the spreadsheet or database at

least once per operating day.

G. Revised Registrations.

1. Unless a Class II permit is required under R18-2-302(B)(2)(b), the owner or

operator of a registered source shall file a revised registration on the occurrence

of any of the following:

a. A modification to the source that would result in an increase in the

source’s uncontrolled potential to emit maximum capacity to emit

with elective limts exceeding any of the following amounts:

i. 2.5 tons per year for NOx, SO2, PM10, PM2.5, VOC or CO.

ii. 0.3 tons per year for lead.

b. Relocation of a portable source.

c. The transfer of the source to a new owner.

2. The requirements of subsection (B) shall not apply to a revised registration. The

owner or operator may begin actual construction and operation of the modified,

relocated or transferred source on filing the revised registration.

H. Registration Term.

1. A source’s registration shall expire five years after the date of issuance of the last

registration for the source or any modification to the source.

2. A source shall submit an application for renewal of a registration not later than

six months before expiration of the registration’s term.

3. If a source submits a timely and complete application for renewal of a

registration, the source’s authorization to operate under its existing registration

shall continue until the Director takes final action on the application.

4. The Director may terminate a registration under R18-2-321(C). If the Director

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terminates a registration under R18-2-321(C)(3), the owner or operator shall be

required to apply for a permit for the source under R18-2-302.

I. Delayed Effective Date. This Section shall take effect on the effective date of the

Administrator’s action approving it as part of the state implementation plan.

Issuance of a registration shall not relieve the owner or operator of the

responsibility to comply fully with applicable provisions of the SIP and any other

requirements under local, state, or federal law.

R18-2-303. Transition from Installation and Operating Permit Program to Unitary

Permit Program; Registration Transition; Minor NSR Transition

A. An installation or operating permit issued before September 1, 1993, and the authority to

operate, as provided in Laws 1992, Ch. 299, § 65, continues in effect until the installation

or operating permit is terminated, or until the Director issues or denies a Class I or Class

II permit to the source, whichever is earlier.

B. The terms and conditions of installation permits issued before September 1, 1993, or in

permits or permit revisions issued under R18-2-302 and authorizing the construction or

modification of a stationary source, remain federal applicable requirements unless

modified or revoked by the Director.

C. All sources in existence on September 1, 2012, requiring a registration shall provide

notice to the Director by no later than December 1, 2012, on a form provided by the

Director.

D. All sources requiring a registration that are in existence on the date R18-2-302.01

becomes effective under R18-2-302.01(I) may submit applications for registration at any

time after R18-2-302.01 is effective and shall submit an application no later than 180

days after receipt of written notice from the Director that an application is required.

Applications to register the construction or modification of a source must be submitted,

and the registration must be issued, before the applicant begins actual construction of the

source or modification.

E. Sources in existence on the date R18-2-334 becomes effective under R18-2-334(I)

[EFFECTIVE DATE OF EPA APPROVAL] are not subject to R18-2-334, unless the

source undertakes a minor NSR modification. Notwithstanding any other provision of

this Chapter, R18-2-334 shall apply only to applications for permits or permit revisions

filed after the date R18-2-334 takes effect under R18-2-334(I) [EFFECTIVE DATE

OF EPA APPROVAL].

Commented [SB12]: Will be able to specify date of EPA approval, once final LA/LD is published.

Page 68 of 153


R18-2-304. Permit Application Processing Procedures

A. Unless otherwise noted, this Section applies to each source requiring a Class I or II

permit or permit revision.

B. Standard Application Form and Required Information. To apply for any permit in this

Chapter, applicants shall complete the “Standard Permit Application Form” and supply

all information required by the “Filing Instructions” as shown in Appendix 1. The

Director, either upon the Director’s own initiative or on the request of a permit applicant,

may waive a requirement that specific information or data be submitted in the application

for a Class II permit for a particular source or category of sources if the Director

determines that the information or data would be unnecessary to determine all of the

following:

1. The applicable requirements to which the source may be subject;

2. That the source is so designed, controlled, or equipped with such air pollution

control equipment that it may be expected to operate without emitting or without

causing to be emitted air contaminants in violation of the provisions of A.R.S.

Title 49, Chapter 3, Article 2 and this Chapter;

3. The fees to which the source may be subject;

4. A proposed emission limitation, control, or other requirement that meets the

requirements of R18-2-306.01 or R18-2-306.02.

C. A timely application is:

1. For a source, that becomes subject to the permit program as a result of a change

in regulation and not as a result of construction or a physical or operational

change, one that is submitted within 12 months after the source becomes subject

to the permit program.

2. For purposes of permit renewal, a timely application is one that is submitted at

least six months, but not more than 18 months, prior to the date of permit

expiration.

3. Any source under R18-2-326(A)(3) which becomes subject to a standard

promulgated by the Administrator pursuant to section 112(d) of the Act shall,

within 12 months of the date on which the standard is promulgated, submit an

application for a permit revision demonstrating how the source will comply with

the standard.

D. If an applicable implementation plan allows the determination of an alternative emission

limit, a source may, in its application, propose an emission limit that is equivalent to the

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emission limit otherwise applicable to the source under the applicable implementation

plan. The source shall also demonstrate that the equivalent limit is quantifiable,

accountable, enforceable, and subject to replicable compliance determination procedures.

E. A complete application shall comply with all of the following:

1. To be complete, an application shall provide all information required by

subsection (B) (standard application form section). An application for permit

revision only need supply information related to the proposed change, unless the

source’s proposed permit revision will change the permit from a Class II permit

to a Class I permit. A responsible official shall certify the submitted information

consistent with subsection (H) (Certification of Truth, Accuracy, and

Completeness).

2. An application for a new permit or permit revision shall contain an assessment of

the applicability of the requirements of Article 4 of this Chapter. If the applicant

determines that the proposed new source is a major source as defined in R18-2-

401, or the proposed permit revision constitutes a major modification as defined

in R18-2-101, then the application shall comply with all applicable requirements

of Article 4.

3. An application for a new permit or permit revision shall contain an assessment of

the applicability of Minor New Source Review requirements in R18-2-334. If the

applicant determines that the proposed new source is subject to R18-2-334, or the

proposed permit revision constitutes a Minor NSR Modification, then the

application shall comply with all applicable requirements of R18-2-334.

4. An application for a new permit or a permit revision shall contain an

assessment of the applicability of the requirements established under Article

17 of this Chapter. If the applicant determines that the proposed new source

permit or permit revision is subject to the requirements of Article 17 of this

Chapter, the application shall comply with all applicable requirements of

that Article.

54. Except for proposed new major sources or major modifications subject to the

requirements of Article 4 of this Chapter, an application for a new permit, a

permit revision, or a permit renewal shall be deemed to be complete unless,

within 60 days of receipt of the application, the Director notifies the applicant by

certified mail that the application is not complete.

65. If a source wishes to voluntarily enter into an emissions limitation, control, or

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other requirement pursuant to R18-2-306.01, the source shall describe that

emissions limitation, control, or other requirement in its application, along with

proposed associated monitoring, recordkeeping, and reporting requirements

necessary to demonstrate that the emissions limitation, control, or other

requirement is permanent, quantifiable, and otherwise enforceable as a practical

matter.

76. If, while processing an application that has been determined or deemed to be

complete, the Director determines that additional information is necessary to

evaluate or take final action on that application, the Director may request such

information in writing and set a reasonable deadline for a response. Except for

minor permit revisions as set forth in R18-2-319, a source’s ability to continue

operating without a permit, as set forth in subsection (J), shall be in effect from

the date the application is determined to be complete until the final permit is

issued, provided that the applicant submits any requested additional information

by the deadline specified by the Director.

7. The completeness determination shall not apply to revisions processed through

the minor permit revision process.

98. Activities which are insignificant pursuant to the definition of insignificant

activities in R18-2-101 shall be listed in the application. Except as necessary to

complete the assessment required by subsection (E)(2) or (3), the The

application need not provide emissions data regarding insignificant activities. If

the Director determines that an activity listed as insignificant does not meet the

requirements of the definition of insignificant activities in R18-2-101 or that

emissions data for the activity is required to complete the assessment

required by subsection E(2) or (3), the Director shall notify the applicant in

writing and specify additional information required.

109. If a permit applicant requests terms and conditions allowing for the trading of

emission increases and decreases in the permitted facility solely for the purpose

of complying with a federally enforceable emission cap that is established in the

permit independent of otherwise applicable requirements, the permit applicant

shall include in its application proposed replicable procedures and permit terms

that ensure the emissions trades are quantifiable and enforceable.

1110. The Director is not in disagreement with a notice of confidentiality submitted

with the application pursuant to A.R.S. § 49-432.

Commented [SB13]: Added to address EPA objection to exclusion of insignificant activities that may have emissions from determination of NSR applicability.

Page 71 of 153


F. A source applying for a Class I permit that has submitted information with an application

under a claim of confidentiality pursuant to A.R.S. § 49-432 and R18-2-305 shall submit

a copy of such information directly to the Administrator.

G. Duty to Supplement or Correct Application. Any applicant who fails to submit any

relevant facts or who has submitted incorrect information in a permit application shall,

upon becoming aware of such failure or incorrect submittal, promptly submit such

supplementary facts or corrected information. In addition, an applicant shall provide

additional information as necessary to address any requirements that become applicable

to the source after the date it filed a complete application but prior to release of a

proposed permit.

H. Certification of Truth, Accuracy, and Completeness. Any application form, report, or

compliance certification submitted pursuant to this Chapter shall contain certification by

a responsible official of truth, accuracy, and completeness. This certification and any

other certification required under this Article shall state that, based on information and

belief formed after reasonable inquiry, the statements and information in the document

are true, accurate, and complete.

I. Action on Application.

1. The Director shall issue or deny each permit according to the provisions of

A.R.S. § 49-427. The Director may issue a permit with a compliance schedule for

a source that is not in compliance with all applicable requirements at the time of

permit issuance.

2. In addition, a permit may be issued, revised, or renewed only if all of the

following conditions have been met:

a. The application received by the Director for a permit, permit revision, or

permit renewal shall be complete according to subsection (E).

b. Except for revisions qualifying as administrative or minor under R18-2-

318 and R18-2-319, all of the requirements for public notice and

participation under R18-2-330 shall have been met.

c. For Class I permits, the Director shall have complied with the

requirements of R18-2-307 for notifying and responding to affected

states, and if applicable, other notification requirements of R18-2-

402(D)(2) and R18-2-410(C)(2).

d. For Class I and II permits, the conditions of the permit shall require

compliance with all applicable requirements.

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e. For permits for which an application is required to be submitted to the

Administrator under R18-2-307(A), and to which the Administrator has

properly objected to its issuance in writing within 45 days of receipt of

the proposed final permit and all necessary supporting information from

the Department, the Director has revised and submitted a proposed final

permit in response to the objection and EPA has not objected to this

proposed final permit within 45 days of receipt.

f. For permits to which the Administrator has objected to issuance pursuant

to a petition filed under 40 CFR 70.8(d), the Administrator’s objection

has been resolved.

g. For a Class II permit that contains voluntary emission limitations,

controls, or other requirements established pursuant to R18-2-306.01, the

Director shall have complied with the requirement of R18-2-306.01(C) to

provide the Administrator with a copy of the proposed permit.

3. If the Director denies a permit under this Section, a notice shall be served on the

applicant by certified mail, return receipt requested. The notice shall include a

statement detailing the grounds for the denial and a statement that the permit

applicant is entitled to a hearing.

4. The Director shall provide a statement that sets forth the legal and factual basis

for the proposed permit conditions including references to the applicable

statutory or regulatory provisions. The Director shall send this statement to any

person who requests it and, for Class I permits, to the Administrator.

5. Priority shall be given by the Director to taking action on applications for

construction or modification submitted pursuant to Title I, Parts C (Prevention of

Significant Deterioration) and D (New Source Review) of the Act.

J. Requirement for a Permit. Except as noted under the provisions in R18-2-317 and R18-2-

319, no source may operate after the time that it is required to submit a timely and

complete application, except in compliance with a permit issued pursuant to this Chapter.

However, if a source under R18-2-326(A)(3) submits a timely and complete application

for continued operation under a permit revision or renewal, the source’s failure to have a

permit is not a violation of this Article until the Director takes final action on the

application. This protection shall cease to apply if, subsequent to the completeness

determination, the applicant fails to submit, by the deadline specified in writing by the

Director, any additional information identified as being needed to process the application.

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This subsection does not affect a source’s obligation to obtain a permit revision before

making a modification to the source.

R18-2-306.01. Permits Containing Voluntarily Accepted Emission Limitations and

Standards

A. A source may voluntarily propose in its application, and accept in its permit, emissions

limitations, controls, or other requirements that are permanent, quantifiable, and

otherwise enforceable as a practical matter in order to avoid classification as a source that

requires a Class I permit or to avoid one or more other applicable requirements. For the

purposes of this Section, “enforceable as a practical matter” means that specific means to

assess compliance with an emissions limitation, control, or other requirement are

provided for in the permit in a manner that allows compliance to be readily determined

by an inspection of records and reports.

B. In order for a source to obtain a permit containing voluntarily accepted emissions

limitations, controls, or other requirements, the source shall demonstrate all of the

following in its permit application:

1. The emissions limitations, controls, or other requirements to be imposed for the

purpose of avoiding an applicable requirement are at least as stringent as the

emissions limitations, controls, or other requirements that would otherwise be

applicable to that source, including those that originate in an applicable

implementation plan; and the permit does not waive, or make less stringent, any

limitations or requirements contained in or issued pursuant to an applicable

implementation plan, or that are otherwise federally enforceable.

2. All voluntarily accepted emissions limitations, controls, or other requirements

will be permanent, quantifiable, and otherwise enforceable as a practical matter.

C. At the same time as notice of proposed issuance is first published pursuant to A.R.S. §

49-426(D), the Director shall send a copy of any Class II permit proposed to be issued

pursuant to this Section to the Administrator for review during the comment period

described in the notice pursuant to R18-2-330(D) R18-2-330(C)(3).

D. The Director shall send a copy of each final permit issued pursuant to this Section to the

Administrator.

R18-2-306.02. Establishment of an Emissions Cap

A. An applicant may, in its application for a new permit, renewal of an existing permit, or as

a significant permit revision, request an emissions cap for a particular pollutant expressed

in tons per year as determined on a 12-month rolling average, or any shorter averaging

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time necessary to enforce any applicable requirement, for any emissions unit,

combination of emissions units, or an entire source to allow operating flexibility

including emissions trading for the purpose of complying with the cap. This Section shall

not apply to sources that hold an authority to operate under a general permit pursuant to

Article 5 of this Chapter.

B. An emissions cap for a Class II source that limits the emissions of a particular pollutant

for the entire source shall not exceed any of the following:

1. The applicable requirement for the pollutant if expressed in tons per year;

2. The source’s actual emissions plus the applicable significance significant level

for the pollutant established in R18-2-101(104);

3. The applicable major source threshold for the pollutant; or

4. A sourcewide emission limitation for the pollutant voluntarily agreed to by the

source under R18-2-306.01.

C. In order to incorporate an emissions cap in a permit the applicant must demonstrate to the

Director that terms and conditions in the permit will:

1. Ensure compliance with all applicable requirements for the pollutant;

2. Contain replicable procedures to ensure that the emissions cap is enforceable as a

practical matter and emissions trading conducted under it is quantifiable and

enforceable as a practical matter. For the purposes of this Section, “enforceable

as a practical matter” shall include the following criteria:

a. The permit conditions are permanent and quantifiable;

b. The permit includes a legally enforceable obligation to comply;

c. The limits impose an objective and quantifiable operational or

production limit or require the use of in-place air pollution control

equipment;

d. The permit limits have short-term averaging times consistent with the

averaging times of the applicable requirement;

e. The permit conditions are enforceable and are independent of any other

applicable limitations; and

f. The permit conditions for monitoring, recordkeeping, and reporting

requirements are sufficient to comply with R18-2-306(A)(3),(4), and (5).

3. For a Class I permit, include all terms required under R18-2-306(A) and R18-2-

309.

D. Class I sources shall log an increase or decrease in actual emissions authorized as a trade

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under an emissions cap unless an applicable requirement requires notice to the Director.

The log shall contain the information required by the permit including, at a minimum,

when the proposed emissions increase or decrease occurred, a description of the physical

change or change in method of operation that produced the increase or decrease, the

change in emissions from the physical change or change in method of operation, and how

the increase or decrease in emissions complies with the permit. Class II sources shall

comply with R18-2-317.02(B)(5).

E. The Director shall not include in an emissions cap or emissions trading allowed under a

cap any emissions unit for which the emissions are not quantifiable or for which there are

no replicable procedures or practical means to enforce emissions trades.

R18-2-319. Minor Permit Revisions

A. Minor permit revision procedures may be used only for those changes at a Class I source

that satisfy all of the following:

1. Do not violate any applicable requirement;

2. Do not involve substantive changes to existing monitoring, reporting, or

recordkeeping requirements in the permit;

3. Do not require or change a case-by-case determination of an emission limitation

or other standard, or a source-specific determination of ambient impacts, or a

visibility or increment an analysis of impacts on visibility or maximum

increases allowed under R18-2-218;

4. Do not seek to establish or change a permit term or condition for which there is

no corresponding underlying applicable requirement and that the source has

assumed in order to avoid an applicable requirement to which the source would

otherwise be subject. The terms and conditions include:

a. A federally enforceable emissions cap that the source would assume to

avoid classification as a modification under any provision of Title I of

the Act; and

b. An alternative emissions limit approved under regulations promulgated

under the section 112(i)(5) of the Act.

5. Are not modifications under any provision of Title I of the Act;

6. Are not changes in fuels not represented in the permit application or provided for

in the permit;

7. Are not minor NSR modifications subject to R18-2-334, except that minor NSR

modifications subject to R18-2-334(G) may be processed as minor permit

Commented [SB14]: EPA disapproved exemption from minor NSR public notice in 334(G) for impacts less than 75 % of NAAQS and RACT based on safe harbor provisions.

Page 76 of 153


revisions; and

8. Are not required to be processed as a significant permit revision under R18-2-

320.

B. Minor permit revision procedures shall be used for the following changes at a Class II

source:

1. A change that triggers a new applicable requirement if all of the following apply:

a. The change is not a minor NSR modification subject to R18-2-334,

except that minor NSR modifications subject to R18-2-334(G) may

be processed as minor permit revisions;

b. A case-by-case determination of an emission limitation or other standard

is not required; and

c. The change does not require the source to obtain a Class I permit;.

2. A change that increases emissions above the permitted level unless the increase

otherwise creates a condition that requires a significant permit revision;

3. A change in fuel from fuel oil or coal, to natural gas or propane, if not authorized

in the permit;

4. A change that results in emissions subject to monitoring, recordkeeping, or

reporting under R18-2-306(A)(3),(4), or (5) and that cannot be measured or

otherwise adequately quantified by monitoring, recordkeeping, or reporting

requirements already in the permit;

5. A decrease in the emissions permitted under an emissions cap unless the decrease

requires a change in the conditions required to enforce the cap or to ensure that

emissions trades conducted under the cap are quantifiable and enforceable; and

6. Replacement of an item of air pollution control equipment listed in the permit

with one that does not have the same or better efficiency.

C. As approved by the Director, minor permit revision procedures may be used for permit

revisions involving the use of economic incentives, marketable permits, emissions

trading, and other similar approaches, to the extent that the minor permit revision

procedures are explicitly provided for in an applicable implementation plan or in

applicable requirements promulgated by the Administrator.

D. An application for minor permit revision shall be on the standard application form

contained in Appendix 1 and include the following:

1. A description of the change, the emissions resulting from the change, and any

new applicable requirements that will apply if the change occurs;

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2. For Class I sources, and any source that is making the change immediately after

it files the application, the source’s suggested draft permit;

3. Certification by a responsible official, consistent with standard permit application

requirements, that the proposed revision meets the criteria for use of minor

permit revision procedures and a request that the procedures be used;

E. EPA and affected state notification. For Class I permits, within five working days of

receipt of an application for a minor permit revision, the Director shall notify the

Administrator and affected states of the requested permit revision in accordance with

R18-2-307.

F. For Class I permits, the Director shall not issue a final permit revision until after the

Administrator’s 45-day review period or until the Administrator has notified the Director

that the Administrator will not object to issuance of the permit revision, whichever is

first, although the Director may approve the permit revision before that time. Within 90

days of the Director’s receipt of an application under minor permit revision procedures,

or 15 days after the end of the Administrator’s 45-day review period, whichever is later,

the Director shall do one or more of the following:

1. Issue the permit revision as proposed,

2. Deny the permit revision application,

3. Determine that the proposed permit revision does not meet the minor permit

revision criteria and should be reviewed under the significant revision

procedures, or

4. Revise the proposed permit revision and transmit to the Administrator the new

proposed permit revision as required in R18-2-307.

G. The source may make the change proposed in its minor permit revision application

immediately after it files the application. After a Class I source makes a change allowed

by the preceding sentence, and until the Director takes any of the actions specified in

subsection (F), the source shall comply with both the applicable requirements governing

the change and the proposed revised permit terms and conditions. During this time

period, the Class I source need not comply with the existing permit terms and conditions

it seeks to modify. However, if the Class I source fails to comply with its proposed permit

terms and conditions during this time period, the existing permit terms and conditions it

seeks to revise may be enforced against it.

H. The permit shield under R18-2-325 shall not extend to minor permit revisions.

I. Notwithstanding any other part of this Section, the Director may require a permit to be

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revised under R18-2-320 for any change that, when considered together with any other

changes submitted by the same source under this Section or R18-2-317.02 over the life of

the permit, do not satisfy subsection (A) for Class I sources or subsection (B) for Class II

sources.

J. The Director shall make available to the public monthly summaries of all applications for

minor permit revisions.

R18-2-320. Significant Permit Revisions

A. For Class I sources, a significant revision shall be used for an application requesting a

permit revision that does not qualify as a minor permit revision or as an administrative

amendment. A significant revision that is only required because of a change described in

R18-2-319(A)(6) or (7) shall not be considered a significant permit revision under part 70

for the purposes of 40 CFR 64.5(a)(2). Every significant change in existing monitoring

permit terms or conditions and every relaxation of reporting or recordkeeping permit

terms or conditions shall follow significant revision procedures.

B. A source with a Class II permit shall make the following changes only after the permit is

revised following the public participation requirements of R18-2-330:

1. Establishing or revising a voluntarily accepted emission limitation or standard as

described by R18-2-306.01 or R18-2-306.02, except a decrease in the limitation

authorized by R18-2-319(B)(5);

2. Making any change in fuel not authorized by the permit and that is not fuel oil or

coal, to natural gas or propane;

3. A change that is a minor NSR modification subject to R18-2-334, except for a

minor modification subject to R18-2-334(G);

4. A change that relaxes monitoring, recordkeeping, or reporting requirements,

except when the change results from:

a. Removing equipment that results in a permanent decrease in actual

emissions, if the source keeps onsite records of the change in a log that

satisfies Appendix 3 of this Chapter and if the requirements that are

relaxed are present in the permit solely for the equipment that was

removed; or

b. A change in an applicable requirement.

5. A change that will cause the source to violate an existing applicable requirement

including the conditions establishing an emissions cap;

6. A change that will require any of the following:

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a. A case-by-case determination of an emission limitation or other standard;

b. A source-specific determination of ambient impacts, or a visibility or

increment an analysis of impacts on visibility or maximum allowable

increases allowed under R18-2-218; or

c. A case-by-case determination of a monitoring, recordkeeping, and

reporting requirement.

7. A change that requires the source to obtain a Class I permit.

C. Any modification to a major source of federally listed hazardous air pollutants, and any

reconstruction of a source, or a process or production unit, under section 112(g) of the

Act and regulations promulgated thereunder, shall follow significant permit revision

procedures and any rules adopted under A.R.S. § 49-426.03.

D. Significant permit revisions shall meet all requirements of this Article for applications,

public participation, review by affected states, and review by the Administrator that apply

to permit issuance and renewal. Notwithstanding R18-2-330(C), the Director may

provide notice for changes requiring a significant permit revision solely under subsection

(B)(2), (4) or (6)(c) by posting a notice on the Department’s web site, sending e-mails to

persons who have requested electronic notification of the Department’s proposed air

quality permit actions and by mailing a copy of the notice as provided in R18-2-

330(C)(1).

E. When an existing source applies for a significant permit revision to revise its permit from

a Class II permit to a Class I permit, it shall submit a Class I permit application in

accordance with R18-2-304. The Director shall issue the entire permit, and not just the

portion being revised, in accordance with Class I permit content and issuance

requirements, including requirements for public, affected state, and EPA review,

contained in R18-2-307 and R18-2-330.

R18-2-326. Fees Related to Individual Permits

A. Source Categories. The owner or operator of a source required to have an air quality

permit from the Director shall pay the fees described in this Section unless authorized to

operate under a general permit issued under Article 5. The fees are based on a source

being classified in one of the following three categories:

1. Class I Title V sources are those required or that elect to have a permit under

R18-2-302(B)(1).

2. Class II Title V sources are those required to have a permit under R18-2-

302(B)(2) and for which either R18-2-302(B)(2)(a)(i) or (ii) applies that are

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subject to new source performance standards or national emission standards

for hazardous air pollutants.

3. Class II Non-Title V sources are those required to have a permit under R18-2-

302(B)(2) and for which neither R18-2-302(B)(2)(a)(i) nor (ii) applies that are

subject to new source performance standards or national emission standards

for hazardous air pollutants.

B. Fees for Permit Actions.

1. The owner or operator of a Class I Title V source, Class II Title V source, or

Class II Non-Title V source shall pay to the Director the following:

a. $133.50 per hour, adjusted annually under subsection (H), for all permit

processing time required for a billable permit action; and

b. The actual costs of public notice conducted according to R18-2-330.

2. The Director may require periodic payment of permit processing fees based on

the most recent accounting of time spent processing the permit including any fees

for contractors.

3. Upon completion of permit processing activities other than issuance or denial of

the permit or permit revision, the Director shall send notice of the decision to the

applicant along with a final itemized bill. The maximum fee for any billable

permit action for a non-Title V source is $25,000. Except as provided in

subsection (G), the Director shall not issue a permit or permit revision until the

final bill is paid in full.

C. Class I Title V Fees. The owner or operator of a Class I Title V source that has undergone

initial startup by January 1 shall annually pay to the Director an administrative fee plus

an emissions-based fee as follows:

1. The applicable administrative fee from the table below, as adjusted annually

under subsection (H). The fee is due by February 1 or 60 days after the Director

mails the invoice under subsection (F), whichever is later.

Class I Title V Source

Category

Administrative

Fee

Aerospace $20,800

Air Curtain Destructors $750

Cement Plants $63,690

Combustion/Boilers $15,480

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Compressor Stations $12,730

Electronics $20,490

Expandable Foam $14,680

Foundries $19,520

Landfills $15,960

Lime Plants $60,160

Copper & Nickel Mines $15,000

Gold Mines $15,000

Mobile Home Manufacturing $14,830

Paper Mills $20,480

Paper Coaters $15,480

Petroleum Products Terminal

Facilities

$22,730

Polymeric Fabric Coaters $20,480

Reinforced Plastics $15,480

Semiconductor Fabrication $26,930

Copper Smelters $63,690

Utilities - Fossil Fuel Fired

Except Coal

$16,440

Utilities - Coal Fired $32,570

Vitamin/Pharmaceutical

Manufacturing

$15,800

Wood Furniture $15,480

Others $20,490

Others with Continuous

Emissions Monitoring

$20,490

2. An emissions-based fee of $38.25 per ton of actual emissions of all regulated

pollutants emitted during the previous calendar year ending 12 months earlier.

The fee is adjusted annually under subsection (d) and due by February 1 or 60

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days after the Director mails the invoice under subsection (F), whichever is later.

a. For purposes of this Section, “actual emissions” means the quantity of all

regulated pollutants emitted during the calendar year, as determined by

the annual emissions inventory under R18-2-327.

b. For purposes of this Section, regulated pollutants consist of the

following:

i. Nitrogen oxides and any volatile organic compounds;

ii. Conventional air pollutants, except carbon monoxide and ozone;

iii. Any pollutant that is subject to any standard promulgated under

Section 111 of the Act, including fluorides, sulfuric acid mist,

hydrogen sulfide, total reduced sulfur, and reduced sulfur

compounds; and

iv. Any federally listed hazardous air pollutant.

c. For purposes of this Section, the following emissions of regulated

pollutants are excluded from a source’s actual emissions:

i. Emissions of any regulated pollutant from the source in excess of

4,000 tons per year;

ii. Emissions of any regulated pollutant already included in the

actual emissions for the source, such as a federally listed

hazardous air pollutant that is already accounted for as a VOC or

as PM10;

iii. Emissions from insignificant activities listed in the permit

application for the source under R18-2-304(E)(8) R18-2-

304(E)(7);

iv. Fugitive emissions of PM10 from activities other than crushing,

belt transfers, screening, or stacking; and

v. Fugitive emissions of VOC from solution-extraction units.

d. The Director shall adjust the rate for emission-based fees every

November 1, after December 4, 2007, by multiplying $38.25 by the

Consumer Price Index (CPI) for the most recent year, and then dividing

by the CPI for the year 2007. The Consumer Price Index for any year is

the average of the Consumer Price Index for all-urban consumers

published by the United States Department of Labor, as of the close of

the 12-month period ending on August 31 of that year.

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D. Class II Title V Fees. The owner or operator of a Class II Title V source that has

undergone initial startup by January 1 shall pay the applicable administrative fee from the

table below, adjusted under subsection (H), for that calendar year, and annually

thereafter. The fee is due by February 1 or 60 days after the Director mails the invoice

under subsection (F), whichever is later.

Class II Title V Source

Category

Administrative Fee

Synthetic minor sources,

except portable sources

Administrative fee

from Class I Title V

table for category

Stationary $8,070

Portables $8,070

Small Source $750

E. Class II Non-Title V Fees. The owner or operator of a Class II Non-Title V source that

has undergone initial startup by January 1 shall pay the applicable inspection fee from the

table below, adjusted under subsection (H), for that calendar year, and annually

thereafter. The fee is due by February 1 or 60 days after the Director mails the invoice

under subsection (F), whichever is later.

Class II Non-Title V Source

Category

Inspection Fee

Stationary $5,230

Portables $5,230

Gasoline Service Stations $750

F. The Director shall mail the owner or operator of each source an invoice for all fees due

under subsections (C), (D), or (E) by December 1.

G. Any person who receives a final itemized bill from the Director under this Section for a

billable permit action may request an informal review of the hours billed and may pay the

bill under protest as provided below:

1. The request shall be made in writing, and received by the Director within 30 days

of the date of the final bill. Unless the Director and person agree otherwise, the

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informal review shall take place within 30 days after the Director’s receipt of the

request. The Director shall arrange the date and location of the informal review

with the person at least 10 business days before the informal review. The

Director shall review whether the amounts of time billed are correct and

reasonable for the tasks involved. The Director shall mail his or her decision on

the informal review to the person within 10 business days after the informal

review date.

2. The Director’s decision after informal review shall become final unless, within

30 days after person’s receipt of the informal review decision, the person

requests a hearing under R18-1-202.

3. If the final itemized bill is paid under protest, the Director shall take final action

on the permit or permit revision.

H. The Director shall adjust the hourly rate every November 1, to the nearest 10 cents per

hour, after December 4, 2007, by multiplying $133.50 by the Consumer Price Index

(CPI) for the most recent year, and then dividing by the CPI for the year 2007. The

Director shall adjust the administrative or inspection fees listed in subsections (C), (D),

and (E) every November 1, to the nearest $10, beginning December 4, 2007, by

multiplying the administrative or inspection fee by the Consumer Price Index (CPI) for

the most recent year, and then dividing by the CPI for the year 2007. The Consumer Price

Index for any year is the average of the Consumer Price Index for all-urban consumers

published by the United States Department of Labor, as of the close of the 12-month

period ending on August 31 of that year.

I. An applicant for a Class I or Class II permit or permit revision may request that the

Director provide accelerated processing of the application by providing the Director

written notice 60 days before filing the application. The request shall be accompanied by

an initial fee of $15,000. The fee is non-refundable to the extent of the Director’s costs

for accelerating the processing if the Director undertakes the accelerated processing

described below:

1. If an applicant requests accelerated permit processing, the Director may, to the

extent practicable, undertake to process the permit or permit revision according

to the following schedule:

a. For applications for initial Class I and II permits under R18-2-302 or

significant permit revisions under R18-2-320, the Director shall issue or

deny the proposed permit or permit revision within 120 days after the

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Director determines that the application is complete.

b. For minor permit revisions under R18-2-319, the Director shall issue or

deny the permit revision within 60 days after receiving a complete

application.

2. At any time after an applicant requests accelerated permit processing, the

Director may require additional advance payments based on the most recent

estimate of additional costs.

3. Upon completion of permit processing activities but before issuance or denial of

the permit or permit revision, the Director shall send notice of the decision to the

applicant along with a final bill. The maximum fee for any billable permit action

for a non-Title V source is $25,000. The final bill shall include all regular permit

processing and other fees due, and, in addition, the difference between the cost of

accelerating the permit application, including any costs incurred by the Director

in contracting for, hiring, or supervising the work of outside consultants, and all

advance payments submitted for accelerated processing. In the event all

payments made exceed actual accelerated permit costs, the Director shall refund

the excess advance payments. Nothing in this subsection affects the public

participation requirements of R18-2-330, or EPA and affected state review as

required under R18-2-307 or R18-2-319.

J. Inactive Sources. The owner or operator of a permitted source that has undergone initial

startup but was shut down for the entire preceding year shall pay 50 percent of the

administrative or inspection fee required under subsection (C), (D), or (E). The owner or

operator of a source claiming inactive status under this subsection shall submit a letter to

the Director by December 15 of the calendar year for which the source was inactive.

Termination of a permit does not relieve a source of any past fees due.

K. If an applicant uses the Tier 4 method for conducting a risk management analysis (RMA)

according to R18-2-1708(B), the applicant shall pay any costs incurred by the Director in

contracting for, hiring or supervising work of outside consultants.

M. Transition.

1. Subsections (A) through (J) of this Section are effective December 4, 2007. The

first administrative or inspection fees are due on February 1, 2008.

2. Except as provided in subsection (b), all fees incurred after December 4, 2007,

are payable in accordance with the rates contained in this Section.

a. Emission-based fees for calendar year 2006 shall be billed at $38.25 per

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ton and be due February 1, 2008.

b. The hourly rates and maximum fees for a new permit or permit revision

are those in effect when the application for the permit or revision is

determined to be complete.

c. Fees accrued but not yet paid before the effective date of this Section

remain as obligations to be paid to the Department.

R18-2-327. Annual Emissions Inventory Questionnaire

A. Every source subject to permit requirements under this Chapter shall complete and

submit to the Director an annual emissions inventory questionnaire. The questionnaire is

due by March 31 or 90 days after the Director makes the inventory form available,

whichever occurs later, and shall include emission information for the previous calendar

year. These requirements apply whether or not a permit has been issued and whether or

not a permit application has been filed.

B. The questionnaire shall be on a form provided by the Director and shall include the

following information:

1. The source’s name, description, mailing address, contact person and contact

person phone number, and physical address and location, if different than the

mailing address.

2. Process information for the source, including design capacity, operations

schedule, and emissions control devices, their description and efficiencies.

3. The actual quantity of emissions from permitted emission points and fugitive

emissions as provided in the permit, including documentation of the method of

measurement, calculation, or estimation, determined pursuant to subsection (C),

of the following regulated air pollutants:

a. Any single regulated air pollutant in a quantity greater than 1 ton or the

amount listed for the pollutant in the definition of “significant” in R18-2-

101(130)(a) R18-2-101(131)(a) or (b), whichever is less.

b. Any combination of regulated air pollutants in a quantity greater than 2

1/2 tons.

C. Actual quantities of emissions shall be determined using the following emission factors

or data:

1. Whenever available, emissions estimates shall either be calculated from

continuous emissions monitors certified pursuant to 40 CFR 75, Subpart C and

referenced appendices, or data quality assured pursuant to Appendix F of 40 CFR

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60.

2. When sufficient data pursuant to subsection (C)(1) is not available, emissions

estimates shall be calculated from data from source performance tests conducted

pursuant to R18-2-312 in the calendar year being reported or, when not available,

conducted in the most recent calendar year representing the operating conditions

of the year being reported.

3. When sufficient data pursuant to subsection (C)(1) or (2) is not available,

emissions estimates shall be calculated using emissions factors from EPA

Publication No. AP-42 “Compilation of Air Pollutant Emission Factors,” Volume

I: Stationary Point and Area Sources, Fifth Edition, 1995, U.S. Environmental

Protection Agency, Research Triangle Park, NC, including Supplements A

through F and all updates published through July 1, 2011 (and no future

editions). AP-42 is incorporated by reference and is on file with the Department

of Environmental Quality and can be obtained from the Government Printing

Office, 732 North Capitol Street, NW, Washington, D.C. 20401, telephone (202)

512-1800, or by downloading the document from the web site for the EPA

Clearinghouse for Emission Inventories and Emission Factors.

4. When sufficient data pursuant to subsections (C)(1) through (C)(3) is not

available, emissions estimates shall be calculated from material balance using

engineering knowledge of process.

5. When sufficient data pursuant to subsections (C)(1) through (4) is not available,

emissions estimates shall be calculated by equivalent methods approved by the

Director. The Director shall only approve methods that are demonstrated as

accurate and reliable as one of the methods in subsections (C)(1) through (4).

D. Actual quantities of emissions calculated under subsection (C) shall be determined on the

basis of actual operating hours, production rates, in-place process control equipment,

operational process control data, and types of materials processed, stored, or combusted.

E. An amendment to an annual emission inventory questionnaire, containing the

documentation required by subsection (B)(3), shall be submitted to the Director by any

source whenever it discovers or receives notice, within two years of the original

submittal, that incorrect or insufficient information was submitted to the Director by a

previous questionnaire. If the incorrect or insufficient information resulted in an incorrect

annual emissions fee, the Director shall require that additional payment be made or shall

apply an amount as a credit to a future annual emissions fee. The submittal of an

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amendment under this subsection shall not subject the owner or operator to an

enforcement action or a civil or criminal penalty if the original submittal of incorrect or

insufficient information was due to reasonable cause and not willful neglect.

F. The Director may require submittal of supplemental emissions inventory questionnaires

for air contaminants pursuant to A.R.S. §§ 49-422, 49-424, and 49-426.03 through 49-

426.08.

R18-2-330. Public Participation

A. The Director shall provide public notice, an opportunity for public comment, and an

opportunity for a hearing before taking any of the following actions:

1. A permit issuance or renewal of a permit The issuance or denial of a permit

or permit renewal,

2. The issuance or denial of a A significant permit revision,

3. Revocation The revocation and reissuance or reopening of a permit,

4. The grant of any Any conditional orders pursuant to R18-2-328,

5. Granting a variance from a general permit under R18-2-507 and R18-2-

1705. The issuance or denial of a registration for the construction of a

source, except as provided in R18-2-302.01(B)(5).

B. The Director shall provide public notice of receipt of complete applications for permits or

permit revisions subject to Article 4 of this Chapter by publishing a notice in a newspaper

of general circulation in the county where the source is or will be located.

C. The Director shall provide the notice required pursuant to subsection (A) as follows:

1. The Director shall publish the notice once each week for two consecutive weeks

in two newspapers of general circulation in the county where the source is or will

be located.

2. The Director shall mail a copy of the notice to persons on a mailing list

developed by the Director consisting of those persons who have requested in

writing to be placed on such a mailing list.

D3. The notice required by subsection (C) shall include the following:

1a. Identification of the affected facility;

2b. Name and address of the permittee or applicant;

3c. Name and address of the permitting authority processing the permit

action;

4d. The activity or activities involved in the permit action;

5e. The emissions change involved in any permit revisions;

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6f. The air contaminants to be emitted;

7g. If applicable, that a notice of confidentiality has been filed under R18-2-

305;

8h. If applicable, that the source has submitted a risk management analysis

under R18-2-1708;

9i. A statement that any person may submit written comments, or a written

request for a public hearing, or both, on the proposed permit action,

along with the deadline for such requests or comments;

10j. The name, address, and telephone number of a person from the

Department from whom additional information may be obtained;

11k. Locations where copies of the permit or permit revision application,

the proposed permit, and all other materials available to the

Director that are relevant to the permit decision the materials

identified in subsection (D) may be reviewed, including the closest

Department office, and the times at which they shall be available for

public inspection.

12l. The Director shall include a statement in the public notice if the permit

or permit revision would result in the generation of emission reduction

credits under R18-2-1204, or the utilization of emission reduction credits

under R18-2-1206.

D. By no later than the date notice is first published under subsection (A), the

Department shall make copies of the following materials available at a public

location in the same county as the stationary source that is the subject of the

application and at the closest Department office:

1. The application;

2. The proposed permit or permit revision, if applicable;

3. The Department’s analysis in support of the grant or denial of the permit or

permit revision;

4. All other materials available to the Director that are relevant to the permit

decision.

E. The Director shall hold a public hearing to receive comments on petitions for conditional

orders which would vary from requirements of the applicable implementation plan. For

all other actions involving a proposed permit, the Director shall hold a public hearing

only upon written request. If a public hearing is requested, the Director shall schedule the

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hearing and publish notice as described in A.R.S. § 49-444 and subsection (D). The

Director shall give notice of any public hearing at least 30 days in advance of the hearing.

F. At the time the Director publishes the first notice under subsection (C)(1), the applicant

shall post a notice containing the information required in subsection (D) (C)(3) at the site

where the source is or may be located. Consistent with federal, state, and local law, the

posting shall be prominently placed at a location under the applicant’s legal control,

adjacent to the nearest public roadway, and visible to the public using the public

roadway. If a public hearing is to be held, the applicant shall place an additional posting

providing notice of the hearing. Any posting shall be maintained until the public

comment period is closed.

G. The Director shall provide at least 30 days from the date of its first notice for public

comment to receive comments and requests for a hearing. The Director shall keep a

record of the commenters and of the issues raised during the public participation process

and shall prepare written responses to all comments received. At the time a final

proposed permit is submitted to EPA, in the case of a Class I permit, or a final decision is

made, in the case of a Class II permit, the record and copies of the Director’s responses

shall be made available to the applicant and all commenters.

R18-2-332. Stack Height Limitation

A. The degree of emission limitation required of any source for control of any pollutant

shall not be affected by so much of any source’s stack height that exceeds good

engineering practice or by any other dispersion technique, except as provided in

subsection (B).

AB. The limitations set forth herein Subsection (A) shall not apply to stacks or dispersion

techniques used by the owner or operator prior to December 31, 1970, for which the

owner or operator had:

1. Begun, or caused to begin, a continuous program of physical on-site

construction of the stack;

2. Entered into building agreements or contractual obligations, which could

not be cancelled or modified without substantial loss to the owner or

operator, to undertake a program of construction of the stack to be

completed in a reasonable time Stacks in existence, or dispersion techniques

implemented, on or before December 31, 1970, unless the stationary source

or emission unit emitting pollutants through the stack, or employing the

dispersion technique, was constructed, reconstructed or underwent a major

Commented [SB15]: Reorganized in the process of correcting a number of deficiencies identified by EPA. Formerly, the rule started with the exceptions, rather than the requirement.

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modification after December 31, 1970; or

32. Coal-fired steam electric generating units, subject to the provisions of Section

118 of the Act which commenced operation before July 1, 1975 1957, with

stacks constructed under a construction contract awarded before February 8,

1974.

BC. GEP Good engineering practice stack height is calculated as the greater of the

following four numbers in subsections (1) through (4) heights:

1. 213.25 feet (65 meters) measured from the ground-level elevation at the base

of the stack;

2. The result of one of the following equations, where “Hg” = good engineering

practice stack height measured from the ground-level elevation at the base

of the stack; “H” = height of nearby structures measured from the ground-

level elevation at the base of the stack; and “L” = lesser dimension (height

or projected width) of nearby structures:

a. For stacks in existence on January 12, 1979, and for which the owner or

operator had obtained all applicable preconstruction permits or approvals

required under 40 CFR Parts 51 and 52 and R18-2-403, Hg = 2.5H,

provided the owner or operator produces evidence that this equation

was actually relied on in establishing an emission limitation;

3b. For all other stacks, Hg = H + 1.5L, where

Hg = good engineering practice stack height, measured from the

ground-level elevation at the base of the stack;

H = height of nearby structure measured from the ground-level

elevation at the base of the stack;

L = lesser dimension (height or projected width) of nearby structure;

provided that the EPA, the Director, or local control agency may require

the use of a field study or fluid model to verify GEP good engineering

practice stack height for the source; or

43. The height demonstrated by a fluid model or a field study approved by the

reviewing agency, which ensures that the emissions from a stack do not result in

excessive concentrations of any air pollutant as a result of atmospheric

downwash, wakes, or eddy effects created by the source itself, nearby structures,

or nearby terrain obstacles features;

D. As used in this Section:

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51. For a specific structure or terrain feature, “nearby” shall be means:

a. For purposes of applying the formulae in subsections (B)(2) and (3)

subsection (C)(2), that distance up to five times the lesser of the height

or the width dimension of a structure but not greater than 0.8 km (1/2

mile).

b. For conducting demonstrations under subsection (B)(4) (C)(3), means

not greater than 0.8 km (1/2 mile). An exception is that the portion of a

terrain feature may be considered to be nearby which falls within a

distance of up to 10 times the maximum height (H+) (Ht) of the feature,

not to exceed 2 miles if such feature achieved a height (H+) (Ht) 0.8 km

from the stack. The height shall be that is at least 40% of the GEP

good engineering practice stack height determined by the formula

provided in subsection (B)(3) (C)(2)(b), or 85 feet (26 meters),

whichever is greater, as measured from the ground-level elevation at the

base of the stack.

62. “Excessive concentrations” means, for the purpose of determining good

engineering practice stack height under subsection (B)(4):

a. For sources seeking credit for stack height exceeding that established

under subsections (B)(2) and (3) subsection (C)(2), a maximum

ground-level concentration due to emissions from a stack due in whole or

in part to downwash, wakes, and eddy effects produced by nearby

structures or nearby terrain features which individually is at least 40% in

excess of the maximum concentration experienced in the absence of such

downwash, wakes, or eddy effects and which contributes to a total

concentration due to emissions from all sources that is greater than an

ambient air quality standard a national ambient air quality

standard. For sources subject to the requirements for permits or

permit revisions under Article 4 of this Chapter R18-2-406, an

excessive concentration alternatively means a maximum ground-level

concentration due to emissions from a stack due in whole or part to

downwash, wakes or eddy effects produced by nearby structures or

nearby terrain features which individually is at least 40% in excess of the

maximum concentration experienced in the absence of such downwash,

wakes, or eddy effects and greater than the applicable maximum

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allowable increase contained in R18-2-218. The allowable emission rate

to be used in making demonstrations under subsection (B)(4) (C)(3) shall

be prescribed by the new source performance standard which is

applicable to the source category unless the owner or operator

demonstrates that this emission rate is infeasible. Where such

demonstrations are approved by the Director, an alternative emission rate

shall be established in consultation with the source owner or operator;

b. For sources seeking credit after October 11, 1983, for increases in

existing stack heights up to the heights established under subsections

(B)(2) and (3) subsection (C)(2), either:

i. A maximum ground-level concentration due in whole or in part

to downwash, wakes, or eddy effects as provided in subsection

(B)(6)(a) (D)(2)(a), except that emission rate specified by any

applicable SIP (or, in the absence of such a limit, the actual

emission rate) shall be used; or

ii. The actual presence of a local nuisance caused by the existing

stack, as determined by the Director; and

c. For sources seeking credit after January 12, 1979, for a stack height

determined under subsections (B)(2) and (3) subsection (C)(2), where

the Director requires the use of a field study or fluid model to verify

GEP good engineering practice stack height, for sources seeking stack

height credit after November 9, 1984, based on the aerodynamic

influence of cooling towers, and for sources seeking stack height credit

after December 31, 1970, based on the aerodynamic influence of

structures not adequately represented by the equations in subsections

(B)(2) and (3) subsection (C)(2), a maximum ground-level

concentration due in whole or in part to downwash, wakes, or eddy

effects that is at least 40% in excess of the maximum concentration

experienced in the absence of such downwash, wakes, or eddy effects.

C. The degree of emission limitation required of any source after the respective date

given in subsection (A) above for control of any pollutant shall not be affected by so

much of any source’s stack height that exceeds good engineering practice or by any

other dispersion technique.

D. The good engineering practice (GEP) stack height for any source seeking credit

Page 94 of 153


because of plume impaction which results in concentrations in violation of national

ambient air quality standards or applicable maximum allowable increases under

R18-2-218 can be adjusted by determining the stack height necessary to predict the

same maximum air pollutant concentration on any elevated terrain feature as the

maximum concentration associated with the emission limit which results from

modelling the source using the GEP stack height as determined herein and

assuming the elevated terrain features to be equal in elevation to the GEP stack

height. If this adjusted GEP stack height is greater than stack height the source

proposes to use, the source’s emission limitation and air quality impact shall be

determined using the proposed stack height and the actual terrain heights.

E. Before the Director issues a permit or permit revision under this Article or Article 4 to a

source based on a good engineering practice stack height that exceeds the height allowed

by subsection (B) (B)(1) or (2), the Director shall notify the public of the availability of

the demonstration study and provide opportunity for a public hearing in accordance with

the requirements of R18-1-402 R18-2-330.

R18-2-334. Minor New Source Review

A. Applicability.

1. Except as provided in subsection (A)(4), this Section shall apply to the following

activities:

a. Construction of any new Class I or Class II source, including the

construction of any source requiring a Class II permit under R18-2-

302.01(C)(4); or

b. Any minor NSR modification to a Class I or Class II source.

2. This Section shall apply to a regulated minor NSR pollutant emitted by a new

stationary source, if the source will have the potential to emit that pollutant at an

amount equal to or greater than the permitting exemption threshold.

3. This Section shall apply to an increase in emissions of a regulated minor NSR

pollutant from a minor NSR modification, if the modification would increase the

source’s potential to emit that pollutant by an amount equal to or greater than the


4. This Section shall not apply to the emissions of a pollutant from any of the

activities identified in this subsection, if the emissions of that pollutant are

subject to Article 4 of this Chapter.

B. No person shall begin actual construction of a new stationary source, or minor NSR

Page 95 of 153


modification, subject to this Section without first obtaining a permit, a permit revision, a

proposed final permit, or a proposed final permit revision from the Director in accordance

with R18-2-304.

C. The Director shall not issue a proposed final Class I permit or permit revision or a Class

II permit or permit revision subject to this Section to a person proposing to construct a

new source or make a minor NSR modification unless the source or modification meets

one of the following conditions for each regulated minor NSR pollutant subject to this

section:

1. The owner or operator elects to implement RACT.

a. In the case of a new source, the owner or operator shall implement

RACT for each emissions unit that has the potential to emit a regulated

minor NSR pollutant in an amount equal to or greater than 20% of the


b. In the case of a minor NSR modification, the owner or operator shall

implement RACT for each emissions unit that will experience an

increase in the potential to emit a regulated minor NSR pollutant equal to

or greater than 20% of the permitting exemption threshold.

c. When it is technically feasible and otherwise consistent with the

definition of RACT to apply the same devices, systems, process

modifications, work practices or other apparatus or techniques to a group

of emissions units, that group of emissions units shall be treated as a

single emissions unit for purposes of subsections (C)(1)(a) and (b). The

following are examples of situations to which this subsection may apply:

i. Emissions from a group of emissions units can be vented to a

single control device.

ii. A low-VOC coating can be used in several spray-painting

booths.

2. An ambient air quality assessment demonstrates that emissions from the source

or minor NSR modification will not interfere with attainment or maintenance of a

standard imposed in Article 2 of this Chapter national ambient air quality

standard in Arizona or any affected state.

a. An owner or operator may elect to have the Director perform a SCREEN

screening model of its emissions. If the results of the SCREEN

screening model indicate that the source or minor NSR modification will

Page 96 of 153


interfere with attainment or maintenance of a standard imposed in

Article 2 of this Chapter national ambient air quality standard, the

owner or operator may perform a more refined model to make the

demonstration required by this subsection.

b. The requirements of this subsection shall be satisfied, if the results of the

SCREEN screening or more refined modeling model conducted

pursuant to subsection (B)(2)(a) demonstrate either of the following:

i. Ambient concentrations resulting from emissions from the

source or modification combined with existing concentrations of

regulated minor NSR pollutants will not cause or exacerbate the

violation of a standard imposed in Article 2 of this Chapter

national ambient air quality standards.

ii. Emissions from the source or minor modification will have an

ambient impact below the significance levels as defined in R18-

2-401.

c. The assessment required by this subsection shall take into account any

limitations, controls or emissions decreases that are or will be

enforceable in the permit or permit revision for the source.

D. RACT Determinations.

1. Except as otherwise provided in this subsection, the Director shall determine

RACT on the basis of a case-by-case analysis performed by the permit applicant

of the emission reduction methods available for each emission unit subject to the

RACT requirement under subsection (C)(1).

2. The Director shall accept a requirement proposed by a permit applicant as RACT

under subsection (C)(1) if it complies with the most recently adopted of the

following guidelines or standards in effect at the time of the application:

a. A control technique guideline issued by the Administrator under section

108(f)(1) of the Act.

b. An emissions standard established or revised by the Administrator for the

same type of source under section 111 or 112 of the Act after November

15, 1990.

c. An applicable requirement of this Chapter or of air quality control

regulations adopted by a County under A.R.S. § 49-479 that has been

specifically identified as constituting RACT.

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d. A RACT standard imposed on the same type of source by a general

permit.

e. A RACT standard imposed on the same type of source under this Section

no more than 10 years before submission of the application by the permit

applicant. To facilitate identification of previously imposed RACT

standards, the Director shall establish an online database of RACT

determinations made under this Section.

E. Notwithstanding an election to adopt RACT under subsection (C)(1), a permit applicant

subject to this Section shall conduct an ambient air quality impact assessment under

subsection (C)(2) upon the Director’s request. The Director shall make such a request, if

there is reason to believe that a source or minor NSR modification could interfere with

attainment or maintenance of a standard imposed in Article 2 of this Chapter national

ambient air quality standards. In making that determination, the Director shall take into

consideration:

1. The source’s emission rates.

2. The location of emission units within the facility and their proximity to the

ambient air.

3. The terrain in which the source is or will be located.

4. The source type.

5. The location and emissions of nearby sources.

6. Background concentrations of regulated minor NSR pollutants.

F. The Director shall deny an application for a Class I permit or permit revision or a Class II

permit or permit revision subject to this Section, if an assessment conducted pursuant to

subsection (C)(2) demonstrates that the source or modification will interfere with

attainment or maintenance of a standard imposed in Article 2 of this Chapter national

ambient air quality standards.

G. An application for a permit or permit revision subject to this Section may be

processed as a minor permit revision if one of the following conditions is satisfied for

each pollutant subject to subsection (C):

1. A RACT standard is imposed under subsection (D)(2) on each emissions unit

that requires such a standard under subsection (C)(1).

2. The results of the SCREEN model for a regulated minor NSR pollutant

show expected concentrations, including background concentrations, that

are less than 75% of the applicable standard imposed in Article 2 of this

Commented [SB16]: Disapproved by EPA

Page 98 of 153


Chapter.

HG. A copy of the notice required by R18-2-330 for permits or significant permit revisions

subject to this Section must also be sent to the Administrator through the appropriate

regional office, and to all other state and local air pollution control agencies having

jurisdiction in the region in which the source subject to the permit or permit revision will

be located. The notice also must be sent to any other agency in the region having

responsibility for implementing the procedures required under this subpart 40 CFR 51,

I.

IH. All modeling required pursuant to this Section shall be conducted in accordance with 40

CFR 51, Appendix W.

JI. The Director shall specify those conditions in the permit that are implemented pursuant to

this Section. The specified conditions shall be included in subsequent permit renewals

unless modified pursuant to this Section or Article 4 of this Chapter.

KJ. The issuance of a permit or permit revision under this Section shall not relieve the owner

or operator of the responsibility to comply fully with applicable provisions of the SIP and

any other requirements under local, state, or federal law.

L. Delayed Effective Date. This Section shall take effect on the effective date of the

Administrator’s action approving it as part of the state implementation plan.

ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR SOURCES AND MAJOR MODIFICATIONS TO EXISTING MAJOR SOURCES


The following definitions apply to this Article:

1. “Adverse impact on visibility” means visibility impairment that interferes with

the management, protection, preservation, or enjoyment of the visitor’s visual

experience of a federal Class I area, as determined according to R18-2-410. This

determination must be made on a case-by-case basis taking into account the

geographic extent, intensity, duration, frequency and time of visibility

impairments, and how these factors correlate with times of visitor use of the

federal Class I area and the frequency and timing of natural conditions that

reduce visibility. This term does not include effects on integral vistas.

2. “Baseline actual emissions” means the rate of emissions, in tons per year, of a

regulated NSR pollutant, as determined in accordance with subsections (2)(a)

through (c) (d).

Commented [SB17]: Moved from rule language. This is the complete federal definition.

Page 99 of 153


a. For any existing electric utility steam generating unit, baseline actual

emissions means the average rate, in tons per year, at which the unit

actually emitted the pollutant during any consecutive 24-month period

selected by the owner or operator within the five-year period

immediately preceding when the owner or operator begins actual

construction of the project. The Director shall allow the use of a different

time period upon a determination that it is more representative of normal

source operation.

i. The average rate shall include fugitive emissions to the extent

quantifiable, and emissions associated with startups, shutdowns,

and malfunctions.

ii. The average rate shall be adjusted downward to exclude any

non-compliant emissions that occurred while the source was

operating above any emission limitation that was legally

enforceable during the consecutive 24-month period.

iii. For a regulated NSR pollutant, when a project involves multiple

emissions units, only one consecutive 24-month period must be

used to determine the baseline actual emissions for the emissions

units being changed. A different consecutive 24-month period

can be used for each regulated NSR pollutant.

iv. The average rate shall not be based on any consecutive 24-month

period for which there is inadequate information for determining

annual emissions, in tons per year, and for adjusting this amount

if required by subsection (2)(a)(ii).

b. For any existing emissions unit (other than an electric utility steam

generating unit), baseline actual emissions means the average rate, in

tons per year, at which the unit actually emitted the pollutant during any

consecutive 24-month period selected by the owner or operator within

the 10-year period immediately preceding either the date the owner or

operator begins actual construction of the project, or the date a complete

permit application is received by the Administrator for a permit required

under 40 CFR 52.21 or by the Director for a permit required under the

state implementation plan, whichever is earlier, except that the 10-year

period shall not include any period earlier than November 15, 1990.

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i. The average rate shall include fugitive emissions to the extent

quantifiable, and emissions associated with startups, shutdowns,

and malfunctions.

ii. The average rate shall be adjusted downward to exclude any

non-compliant emissions that occurred while the source was

operating above any emission limitation that was legally

enforceable during the consecutive 24-month period. This

provision applies to excess emissions associated with a

malfunction.

iii. The average rate shall be adjusted downward to exclude any

emissions that would have exceeded an emission limitation with

which the major source must currently comply, had such major

source been required to comply with such limitations during the

consecutive 24-month period. However, if an emission limitation

is part of a maximum achievable control technology standard

that the Administrator proposed or promulgated under 40 CFR

63, the baseline actual emissions need only be adjusted if the

state of Arizona has taken credit for such emissions reductions in

an attainment demonstration or maintenance plan consistent

with the requirements of 40 CFR 51.165(a)(3)(ii)(G)

submitted to the Administrator pursuant to section 110(a)(1)

of the Act.

iv. For a regulated NSR pollutant, when a project involves multiple

emissions units, only one consecutive 24-month period must be

used to determine the baseline actual emissions for all existing

emissions units affected by the project. A different consecutive

24-month period may be used for each regulated NSR pollutant.

v. The average rate shall not be based on any consecutive 24-month

period for which there is inadequate information for determining

annual emissions, in tons per year, and for adjusting this amount

if required by subsection (2)(b)(ii) or (iii).

c. For a new emissions unit, the baseline actual emissions for purposes of

determining the emissions increase that will result from the initial

construction and operation of such unit shall equal zero; and thereafter,

Page 101 of 153


for all other purposes, shall equal the unit’s potential to emit.

d. For a PAL for a stationary source, the baseline actual emissions shall be

calculated for existing electric utility steam generating units in

accordance with the procedures in subsection (2)(a), for other existing

emissions units in accordance with the procedures contained in

subsection (2)(b), and for new emissions units in accordance with the

procedures contained in subsection (2)(c).

3. “Basic design parameter” means:

a. Except as provided in subsection (3)(c), for a process unit at a steam

electric generating facility, the owner or operator may select as its basic

design parameters either maximum hourly heat input and maximum

hourly fuel consumption rate or maximum hourly electric output rate and

maximum steam flow rate. When establishing fuel consumption

specifications in terms of weight or volume, the minimum fuel quality

based on Btu content shall be used for determining the basic design

parameters for a coal-fired electric utility steam generating unit.

b. Except as provided in subsection (3)(c), the basic design parameters for

any process unit that is not at a steam electric generating facility are

maximum rate of fuel or heat input, maximum rate of material input, or

maximum rate of product output. Combustion process units will typically

use maximum rate of fuel input. For sources having multiple end

products and raw materials, the owner or operator should consider the

primary product or primary raw material when selecting a basic design

parameter.

c. If the owner or operator believes the basic design parameters in

subsections (3)(a) and (b) are not appropriate for a specific industry or

type of process unit, the owner or operator may propose to the Director

an alternative basic design parameters for the source’s process unit. If the

Director approves of the use of an alternative basic design parameters,

the Director shall issue a permit that is legally enforceable that records

such basic design parameters and requires the owner or operator to

comply with such parameters.

d. The owner or operator shall use credible information, such as results of

historic maximum capability tests, design information from the

Commented [SB18]: Retained consistent with EPA’s final LA/LD.

Page 102 of 153


manufacturer, or engineering calculations, in establishing the magnitude

of the basic design parameters specified in subsections (3)(a) and (b).

e. If design information is not available for a process unit, then the owner

or operator shall determine the process unit’s basic design parameters

using the maximum value achieved by the process unit in the five-year

period immediately preceding the planned activity.

f. Efficiency of a process unit is not a basic design parameter.

g. The replacement activity shall not cause the process unit to exceed any

emission limitation, or operational limitation that has the effect of

constraining emissions, that applies to the process unit and that is legally

enforceable.

4. “Complete” means, in reference to an application for a permit or permit revision,

that the application contains all the information necessary for processing the

application. Designating an application complete for purposes of permit

processing does not preclude the Department from requesting or accepting

any additional information.

5. “Dispersion technique” means any technique that attempts to affect the

concentration of a pollutant in the ambient air by any of the following:

a. Using that portion of a stack that exceeds good engineering practice

stack height;

b. Varying the rate of emission of a pollutant according to atmospheric

conditions or ambient concentrations of that pollutant; or

c. Increasing final exhaust gas plume rise by manipulating source process

parameters, exhaust gas parameters, stack parameters, or combining

exhaust gases from several existing stacks into one stack; or other

selective handling of exhaust gas streams that increases the exhaust gas

plume rise. This shall not include any of the following:

i. The reheating of a gas stream, following use of a pollution

control system, for the purpose of returning the gas to the

temperature at which it was originally discharged from the

facility generating the gas stream.

ii. The merging of exhaust gas streams under any of the following

conditions:

(1) The source owner or operator demonstrates that the

Page 103 of 153


facility was originally designed and constructed with the

merged gas streams;

(2) After July 18 8, 1985, the merging is part of a change in

operation at the facility that includes the installation of

pollution controls and is accompanied by a net reduction

in the allowable emissions of a pollutant, applying only

to the emission limitation for that pollutant; or

(3) Before July 8, 1985, the merging was part of a change in

operation at the facility that included the installation of

emissions control equipment or was carried out for

sound economic or engineering reasons. Where there

was an increase in the emission limitation or, in the

event that no emission limitation was in existence prior

to the merging, an increase in the quantity of pollutants

actually emitted prior to the merging, the Department

shall presume that merging was significantly motivated

by an intent to gain emissions credit for greater

dispersion. Absent a demonstration by the source owner

or operator that merging was not significantly motivated

by such intent, the Department shall deny credit for the

effects of the merging in calculating the allowable

emissions for the source.

iii. Smoke management in agricultural or silvicultural prescribed

burning programs.

iv. Episodic restrictions on residential woodburning and open

burning.

v. Techniques that increase final exhaust gas plume rise if the

resulting allowable emissions of sulfur dioxide from the facility

do not exceed 5,000 tons per year.

6. “Existing emissions unit” is any emissions unit that is currently in existence and

that is not a new emissions unit. A replacement unit is an existing emissions unit.

7. “Federal Class I area” means an area designated as Class I under R18-2-

217.

78. “High terrain” means any area having an elevation of 900 feet or more above the

Page 104 of 153


base of the stack of a source.

89. “Innovative control technology” means any system of air pollution control that

has not been adequately demonstrated in practice but would have a substantial

likelihood of achieving greater continuous emissions reduction than any control

system in current practice, or of achieving at least comparable reductions at

lower cost in terms of energy, economics, or nonair quality environmental

impacts.

910. “Low terrain” means any area other than high terrain.

1011. “Lowest achievable emission rate” (LAER) means, for any source, the more

stringent rate of emissions based on one of the following:

a. The most stringent emissions limitation that is contained in any

implementation plan approved or promulgated under sections 110 or 172

of the Act for the class or category of stationary source, unless the owner

or operator of the proposed stationary source demonstrates that the

limitation is not achievable; or

b. The most stringent emissions limitation that is achieved in practice by

the class or category of stationary source. This limitation, when applied

to a modification, means the lowest achievable emissions rate for the

new or modified emissions units within the stationary source. The

application of this term shall not permit a proposed new or modified

stationary source to emit any pollutant in excess of the amount allowable

under the applicable standards of performance in Articles 9 and 11 of

this Chapter new source performance standards.

12. “Major emissions unit” means:

a. Any emissions unit that emits or has the potential to emit 100 tons

per year or more of the PAL pollutant in an attainment area; or

b. Any emissions unit that emits or has the potential to emit the PAL

pollutant in an amount that is equal to or greater than the major

source threshold for the PAL pollutant for nonattainment areas. For

example, in accordance with the definition of major stationary

source in section 182(c) of the Act, an emissions unit would be a

major emissions unit for VOC if the emissions unit is located in a

serious ozone nonattainment area and it emits or has the potential to

emit 50 or more tons of VOC per year.

Page 105 of 153


1113. “Major source” means is defined as follows:

a. For purposes of determining the applicability of R18-2-403 through

R18-2-405 or R18-2-411, major source means any Any stationary

source located in a nonattainment area that emits, or has the potential

to emit, 100 tons per year or more of any regulated NSR pollutant,

except that the following thresholds shall apply in areas subject to

subpart 2, subpart 3 or subpart 4 of part D, Title I of the Act:

Pollutant

Emitted

Nonattainment

Pollutant and

Classification

Quantity

Threshold

tons/year or

more

Carbon

Monoxide

(CO)

CO, Serious, if

stationary

sources

contribute

significantly to

CO levels in the

area as

determined

under rules

issued by the

Administrator

50

VOC

Ozone, Serious

50

VOC

Ozone, Severe

25

PM10

PM10, Serious

70

PM2.5 PM2.5 Serious 70

Commented [SB19]: The new approach in a and b to identifying when the definition applies is more accurate and consistent with the federal rules.

Page 106 of 153


PM2.5

precursors

identified in

R18-2-

101(124)(a)

PM2.5 Serious 70

NOx

Ozone, Serious

50

NOx Ozone, Severe 25

b. For purposes of determining the applicability of R18-2-406 through

R18-2-408 or R18-2-410, major source means any Any stationary

source located in an attainment or unclassifiable area that emits, or

has the potential to emit, 100 tons per year or more of any regulated NSR

pollutant if the source is classified as a Categorical Source categorical

source, or 250 tons per year or more of any regulated NSR pollutant if

the source is not classified as a Categorical Source categorical source;

c. Any stationary source that emits, or has the potential to emit, five or

more tons of lead per year;

c. A major source includes a physical change that would occur at a

stationary source, not otherwise qualifying under subsection (13)(a)

or (b) as a major source, if the change would constitute a major

source by itself.

d. A major source that is major for VOC or nitrogen oxides shall be

considered major for ozone; or.

e. The fugitive emissions of a stationary source shall not be included in

determining for any of the purposes of this Section Article whether it is

a major stationary source, unless the source belongs to a section 302(j)

category.

14. “Mandatory federal Class I area” means an area identified in R18-2-217(B).

1215. “New emissions unit” means any emissions unit which is (or will be) newly

constructed and which has existed for less than two years from the date such

emissions unit first operated.

Page 107 of 153


1316. “Plantwide applicability limitation” or “PAL” means an emission limitation that

is based on the baseline actual emissions of all emissions units at the stationary

source that emit or have the potential to emit the PAL pollutant, expressed in tons

per year, for a pollutant at a major source, that is enforceable as a practical matter

and established source-wide in accordance with this Section.

1417. “PAL allowable emissions” means “allowable emissions” as defined in R18-2-

101, except that the allowable emissions for any emissions unit shall be

calculated considering any emission limitations that are enforceable as a practical

matter on the emissions unit’s potential to emit.

1518. PAL effective date generally means the date of issuance of the PAL permit.

However, the PAL effective date for an increased PAL is the date any emissions

unit that is part of the PAL major modification becomes operational and begins

to emit the PAL pollutant.

1619. “PAL effective period” means the period beginning with the PAL effective date

and ending 10 years later.

1720. “PAL major modification” means any physical change in or change in the

method of operation of the PAL source that causes it to emit the PAL pollutant at

a level equal to or greater than the PAL.

1821. “PAL permit” means the permit issued by the Director that establishes a PAL for

a major source under Article 3 or 4 of this Chapter.

1922. “PAL pollutant” means the pollutant for which a PAL is established at a major

source.

2023. “Projected actual emissions” means:

a. The maximum annual rate, in tons per year, at which an existing

emissions unit is projected to emit a regulated NSR pollutant during any

12-month period in the 60 calendar months following the date the unit

resumes regular operation after the project, or in any 12-month period in

the 120 calendar months following that date if the project involves

increasing the design capacity or potential to emit of any emissions unit

for that regulated NSR pollutant and full utilization of the unit would

result in a significant emissions increase or a significant net emissions

increase at the major source.

b. In determining the projected actual emissions before beginning actual

construction, the owner or operator of the major source:

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i. Shall consider all relevant information, including but not limited

to, historical operational data, the company’s own

representations, the company’s expected business activity and

the company’s highest projections of business activity, the

company’s filings with the county, state or federal regulatory

authorities, and compliance plans under these regulations; and

ii. Shall include fugitive emissions to the extent quantifiable;

iii. Shall include emissions associated with startups, and shutdowns,

and malfunctions except emissions from a shutdown

associated with a malfunction; and

iv. Shall exclude, only for calculating any increase in emissions that

results from the particular project, that portion of the unit’s

emissions following the project that an existing unit could have

accommodated during the consecutive 24-month period used to

establish the baseline actual emissions and that are also unrelated

to the particular project, including any increased utilization due

to product demand growth; or

c. In lieu of using the method set out subsections (20)(b)(i) 23(b)(i) through

(iv), the owner or operator may elect to use the emissions unit’s potential

to emit, in tons per year.

21. “Reconstruction” of sources located in nonattainment areas shall be

presumed to have taken place if the fixed capital cost of the new components

exceeds 50% of the fixed capital cost of a comparable entirely new

stationary source, as determined in accordance with the provisions of 40

CFR 60.15(f)(1) through (3).

2224. “Replacement unit” means an emissions unit for which all the criteria listed in

subsections (22)(a) (24)(a) through (d) are met. No creditable emission

reductions shall be generated from shutting down the existing emissions unit that

is replaced.

a. The emissions unit is a reconstructed unit within the meaning of 40 CFR

60.15(b)(1), or the emissions unit completely takes the place of an

existing emissions unit.

b. The emissions unit is identical to or functionally equivalent to the

replaced emissions unit.

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c. The replacement does not alter the basic design parameters of the process

unit.

d. The replaced emissions unit is permanently removed from the major

source, otherwise permanently disabled, or permanently barred from

operation by a permit that is enforceable as a practical matter. If the

replaced emissions unit is brought back into operation, it shall constitute

a new emissions unit.

2325. “Resource recovery project” means any facility at which solid waste is processed

for the purpose of extracting, converting to energy, or otherwise separating and

preparing solid waste for reuse. Only energy conversion facilities that utilize

solid waste that provides more than 50% of the heat input shall be considered a

resource recovery project under this Article.

2426. “Significant emissions unit” means an emissions unit that emits or has the

potential to emit a PAL pollutant in an amount that is equal to or greater than the

significant level for that PAL pollutant, but less than the amount that would

qualify the unit as a major emissions unit.

2527. “Significance levels” means the following ambient concentrations for the

enumerated pollutants:

Averaging Time

Pollutant Annual 24-Hour 8-Hour 3-Hour 1-Hour

SO2 1 µg/m3 5 µg/m3 25 µg/m3

NO2 1 µg/m3

CO 0.5 mg/m3 2 mg/m3

PM10 1 µg/m3 5 µg/m3 PM2.5

federal

Class I area

0.06 µg/m3 0.07 µg/m3

PM2.5

federal

Class II area

0.3 µg/m3 1.2 µg/m3

PM2.5

federal

Class III area

0.3 µg/m3 1.2 µg/m3

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Except for the annual pollutant concentrations, the Department shall deem that exceedance of significance levels has occurred when the ambient concentration of the above pollutant is exceeded more than once per year at any one location. If the concentration occurs at a specific location and at a time when Arizona ambient air quality standards the national ambient air quality standards for the pollutant are not violated, the significance level does not apply.

2628. “Small emissions unit” means an emissions unit that emits or has the potential to

emit the PAL pollutant in an amount less than the significant level for that PAL

pollutant.

R18-2-402. General

A. The preconstruction review requirements of this Article shall apply to the construction of

any new major source or any project at an existing major source.

B. The requirements of R18-2-403 through R18-2-410 apply to the construction of a major

source or a major modification of any existing stationary source, except as this Article

otherwise provides.

C. No person shall begin actual construction of a new major source or a major modification

subject to the requirements of R18-2-403 through R18-2-410 without first obtaining a

proposed final permit from the Director, pursuant to R18-2-307(A)(2), stating that the

major source or major modification shall meet those requirements.

D. The requirements of this Article apply to projects at major sources in accordance with the

following principles.

1. Except as otherwise provided in subsection (E), a project is a major modification

for a regulated NSR pollutant if it causes both a significant emissions increase

and a significant net emissions increase. The project is not a major modification

if it does not cause a significant emissions increase. If the project causes a

significant emissions increase, then the project is a major modification only if it

also results in a significant net emissions increase.

2. The procedure for calculating before beginning actual construction whether a

significant emissions increase will occur depends upon the types of emissions

units being modified as set forth in subsections (D)(3) through (6). The procedure

for calculating before beginning actual construction whether a significant net

emissions increase will occur at the major source is set forth in the definition of

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net emissions increase in R18-2-101. Regardless of any such preconstruction

projections, a major modification results if the project causes a significant

emissions increase and a significant net emissions increase.

3. Actual-to-projected-actual applicability test for projects that only involve existing

emissions units. A significant emissions increase of a regulated NSR pollutant is

projected to occur if the sum of the difference between the projected actual

emissions and the baseline actual emissions, for each existing emissions unit,

equals or exceeds the significant amount for that pollutant.

4. Actual-to-potential applicability test for projects that only involve new emissions

units. A significant emissions increase of a regulated NSR pollutant is projected

to occur if the sum of the difference between the potential to emit from each new

emissions unit following completion of the project and the baseline actual

emissions of these units before the project equals or exceeds the significant

amount for that pollutant.

5. [Reserved.]

6. Hybrid applicability test for projects that involve both new emissions units and

existing emissions units. A significant emissions increase of a regulated NSR

pollutant is projected to occur if the sum of the emissions increases for each

emissions unit, using the method specified in subsection subsections (D)(3)

through (D)(4), as applicable with respect to each emissions unit, equals or

exceeds the significant amount for that pollutant.

E. Any major source with a PAL for a regulated NSR pollutant shall comply with R18-2-

412.

F. This subsection applies with respect to any regulated NSR pollutant emitted from projects

at existing emissions units at a major stationary source (other than projects at a source

with a PAL) in circumstances where there is a reasonable possibility, within the meaning

of subsection (F)(6) of this Section, that a project that is not a part of a major

modification may result in a significant emissions increase of such pollutant and the

owner or operator elects to use the method specified in R18-2-401(20)(b)(i) R18-2-

401(23)(b)(i) through (iv) of the definition of projected actual emissions for calculating

projected actual emissions.

1. Before beginning actual construction of the project, the owner or operator shall

document and maintain a record of the following information:

a. A description of the project;

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b. Identification of the emissions unit(s) with emissions of a regulated NSR

pollutant that could be affected by the project;

c. A description of the applicability test used to determine that the project is

not a major modification for any regulated NSR pollutant, including the

baseline actual emissions, the projected actual emissions, the amount of

emissions excluded under R18-2-401(20)(b)(iii) R18-2-401(23)(b)(iv) of

the definition of projected actual emissions, and an explanation for why

such amount was excluded; and

d. Any netting calculations, if applicable.

2. If the emissions unit is an existing electric utility steam generating unit, before

beginning actual construction, the owner or operator shall provide a copy of the

information set out in subsection (F)(1) to the Director. Nothing in this

subsection shall be construed to require the owner or operator of such a unit to

obtain any determination from the Director before beginning actual construction.

3. The owner or operator shall monitor the emissions of any regulated NSR

pollutant that could increase as a result of the project and that is emitted by any

emissions unit identified in subsection (F)(1)(b); and calculate and maintain a

record of the annual emissions, in tons per year on a calendar year basis, for a

period of five years following resumption of regular operations after the change,

or for a period of 10 years following resumption of regular operations after the

change if the project increases the design capacity or potential to emit of that

regulated NSR pollutant at such emissions unit. For purposes of this subsection,

fugitive emissions (to the extent quantifiable) shall be monitored if the emissions

unit is part of a section 302(j) category or if the emissions unit is located at a

major stationary source that belongs to a section 302(j) category.

4. The owner or operator shall submit a report to the Director if for a calendar year

the annual emissions, in tons per year, from the project identified in subsection

(F)(1)(a) (F)(1) exceed the sum of the baseline actual emissions, as documented

and maintained under subsection (F)(1)(c), by a significant amount for that

regulated NSR pollutant, and if the emissions differ from the preconstruction

projection as documented and maintained under subsection (F)(1)(c). The owner

or operator shall submit the report to the Director within 60 days after the end of

the calendar year. The report shall contain the following:

a. The name, address and telephone number of the major source;

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b. The annual emissions as calculated pursuant to subsection (F)(3); and

c. Any other information that the owner or operator wishes to include in the

report, such as an explanation as to why the emissions differ from the

preconstruction projection.

5. Notwithstanding subsection (F)(4), if any existing emissions unit identified in

subsection (F)(1)(b) is an electric utility steam generating unit, the owner or

operator shall submit a report to the Director within 60 days after the end of each

calendar year during which the owner or operator must generate records under

subsection (F)(3). The report shall document the unit’s post-project annual

emissions during the calendar year that preceded submission of the report.

6. A “reasonable possibility” under subsection (F) occurs when the owner or

operator calculates the project to result in one of the following:

a. A projected actual emissions increase of at least 50% of the amount that

is a significant emissions increase (without reference to the amount that

is a significant net emissions increase) for the regulated NSR pollutant.

b. A projected actual emissions increase that, added to the amount of

emissions excluded under subsection R18-2-401(20)(b)(iv) R18-2-

401(23)(b)(iv) of the definition of projected actual emissions, sums to at

least 50% of the amount that is a significant emissions increase (without

reference to the amount that is a significant net emissions increase) for

the regulated NSR pollutant. For a project for which a reasonable

possibility occurs only within the meaning of subsection (F)(6)(b), and

not also within the meaning of subsection (F)(6)(a), subsections (F)(2)

through (5) do not apply to the project.

7. The owner or operator of the source shall make the information required to

be documented and maintained under subsection (F) available for review

upon request for inspection by the Department or the general public.

G. An application for a permit or permit revision under this Article, other than a PAL permit

pursuant to R18-2-412, shall not be considered complete unless the application

demonstrates that:

1. The requirements in subsection (H) are met;

2. The more stringent of the applicable new source performance standards in

Article 9 of this Chapter or the existing source performance standards in Article

7 of this Chapter are applied to the proposed new major source or major

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modification of a major source;

3. The visibility requirements contained in R18-2-410 are satisfied;

4. All applicable provisions of Article 3 of this Chapter are met;

5. The new major source or major modification will be in compliance with

whatever emission limitation, design, equipment, work practice or operational

standard, or combination thereof is applicable to the source or modification. The

degree of emission limitation required for control of any pollutant under this

Article shall not be affected in any manner by:

a. Stack height in excess of GEP stack height except as provided in R18-2-

332; or

b. Any other dispersion technique, unless implemented prior to December

31, 1970;

6. The new major source or major modification will not exceed the applicable

standards for hazardous air pollutants contained in this Chapter;

7. The new major source or major modification will not exceed the limitations, if

applicable, on emission from nonpoint sources contained in Article 6 of this

Chapter;

8. A stationary source that will emit five or more tons of lead per year will not

violate the ambient air quality standards for lead contained in R18-2-206;

98. The new major source or major modification will not have an adverse impact on

visibility, as determined according to R18-2-410.

H. Except for assessing air quality impacts within federal Class I areas, the air impact

analysis required to be conducted as part of a permit application shall initially consider

only the geographical area located within a 50 kilometer radius from the point of greatest

emissions for the new major source or major modification. The Director, on his own

initiative or upon receipt of written notice from any person shall have the right at any

time to request an enlargement of the geographical area for which an air quality impact

analysis is to be performed by giving the person applying for the permit or permit

revision written notice thereof, specifying the enlarged radius to be so considered. In

performing an air impact analysis for any geographical area with a radius of more than 50

kilometers, the person applying for the permit or permit revision may use monitoring or

modeling data obtained from major sources having comparable emissions or having

emissions which are capable of being accurately used in such demonstration, and which

are subjected to terrain and atmospheric stability conditions which are comparable or

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which may be extrapolated with reasonable accuracy for use in such demonstration.

I. Unless the requirement has been satisfied pursuant to Article 3 of this Chapter, the

The Director shall comply with following requirements with respect to an application

for a permit or permit revision subject to this Article:

1. Within 60 days after receipt of an the application for a permit or permit

revision subject to this Article, or any addition to such the application, the

Director shall advise the applicant of any deficiency. The date of receipt of the a

complete application shall be, for the purpose of this Section, the date on which

the Director received receives all required information. The permit application

shall not be deemed complete if the Director fails to meet the requirements of this

subsection.

2. Within one year after receipt of a complete application, the Director shall do

all of the following:

a. Make a preliminary determination whether the permit or permit

revision should be granted or denied.

b. Make the application, all materials the applicant submitted, the

preliminary determination, and materials relating to the application

available under R18-2-330(D).

c. Notify the public of the application, the preliminary determination

and the opportunity for a public hearing and to submit written

comments in accordance with R18-2-330(C). In the case of an

application subject to R18-2-406, the notice shall include the degree

of consumption of the maximum allowable increases allowed under

R18-2-218 that is expected to occur as a result of emissions from the

proposed source or modification.

d. Take final action on the application by denying the permit or permit

revision or issuing a proposed final permit or permit revision.

e. Notify the applicant in writing of the approval or denial and make

the notification, comments on the proposed action, and materials

supporting the final action available for public inspection at the

location where materials relating to the proposed action were placed

under R18-2-330(D).

23. A copy of any notice required by R18-2-330 and subsection (I)(2)(c) shall be

sent to the permit applicant, to the Administrator, and to the following officials

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and agencies having cognizance over the location where the proposed major

source or major modification would occur:

a. The air pollution control officer, if one exists, for the county wherein the

proposed or existing source that is the subject of the permit or permit

revision application is located;

b. The county manager for the county wherein the proposed or existing

source that is the subject of the permit or permit revision application is

located;

c. The city or town managers of the city or town which contains, and any

city or town the boundaries of which are within 5 miles of, the location

of the proposed or existing source that is the subject of the permit or

permit revision application;

d. Any regional land use planning agency with authority for land use

planning in the area where the proposed or existing source that is the

subject of the permit or permit revision application is located; and

e. Any state, Federal Land Manager, or Indian governing body whose lands

may be affected by emissions from the proposed source or modification.

3. The Director shall take final action on the application within one year of the

proper filing of the completed application. The Director shall notify the

applicant in writing of his approval or denial.

4J. The authority to construct and operate a new major source or major modification under a

permit or permit revision issued under this Article shall terminate if the owner or operator

does not commence the proposed construction or major modification within 18 months of

issuance or if, during the construction or major modification, the owner or operator

suspends work for more than 18 months. The Director may extend the 18-month period

upon a satisfactory showing that an extension is justified. This provision does not apply

to the time period between construction of the approved phases of a phased construction

project; each phase must commence construction within 18 months of the projected and

approved commencement date.

R18-2-403. Permits for Sources Located in Nonattainment Areas

A. Except as provided in subsections (C) through (G) below, no permit or permit revision

shall be issued under this Article to a person proposing to construct a new major source

or make a major modification that is major for the pollutant for which the area is

designated nonattainment unless:

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1. The person demonstrates that the new major source or the major modification

will meet an emission limitation which is the lowest achievable emission rate

(LAER) for that source for that regulated NSR pollutant.

2. The person demonstrates that all existing major sources owned or operated by

that person (or any entity controlling, controlled by, or under common control

with that person) in the state are in compliance with, or on a schedule of

compliance for, all conditions contained in permits of each of the sources and all

other applicable emission limitations and standards under the Act and this

Chapter.

3. The person demonstrates that emission reductions for the specific pollutant(s)

from source(s) in existence in the allowable offset area of the new major source

or major modification (whether or not under the same ownership) meet the offset

requirements of R18-2-404.

4. The Administrator has not determined that the applicable implementation

plan is not being adequately implemented for the nonattainment area in

which the proposed source is to be constructed or modified in accordance

with the requirements in this Section.

B. No permit or permit revision under this Article shall be issued to a person proposing to

construct a new major source or make a major modification to a major source located in a

nonattainment area unless:

1. The person performs an analysis of alternative sites, sizes, production processes,

and environmental control techniques for such new major source or major

modification; and

2. The Director determines that the analysis demonstrates that the benefits of the

new major source or major modification significantly outweigh the

environmental and social costs imposed as a result of its location, construction, or

modification.

C. At such time that a particular source or modification becomes a major source or major

modification solely by virtue of a relaxation in any enforceable limitation which was

established after August 7, 1980, on the capacity of the source or modification otherwise

to emit a pollutant, such as restriction on hours of operation, then the requirements of this

Section shall apply to the source or modification as though construction had not yet

commenced on the source or modification.

D. Secondary emissions shall not be considered in determining the potential to emit of a new

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source or modification and therefore whether the new source or modification is major.

However, if a new source or modification is subject to this Section on the basis of its

direct emissions, a permit or permit revision under this Article to construct the new

source or modification shall be denied unless the requirements of R18-2-403(A)(3) and

R18-2-404 are met for reasonably quantifiable secondary emissions caused by the new


E. A permit to construct a new major source or major modification shall be denied unless

the conditions specified in subsections (A)(1), (2), and (3) are met for fugitive emissions

caused by the new source or modification. However, these conditions shall not apply to a

new major source or major modification that would be a major source or major

modification only if fugitive emissions, to the extent quantifiable, are considered in

calculating the potential emissions of the source or modification, and the source does not

belong to a section 302(j) category.

F. The requirements of subsection (A)(3) shall not apply to temporary emissions units, such

as pilot plants, portable facilities that will be relocated outside of the nonattainment area

and the construction phase of a new source, if those units will operate for no more than

24 months in the nonattainment area, are otherwise in compliance with the requirement to

obtain a permit under this Chapter and are in compliance with the conditions of that

permit.

G. A decrease in actual emissions shall be considered in determining the potential of a new

source or modification to emit only to the extent that the Director has not relied on it in

issuing any permit or permit revision under this Article or the state has not relied on it in

demonstrating attainment or reasonable further progress.

H. The Director shall transmit to the Administrator a copy of each permit application

relating to a major stationary source or major modification under this Section.

Within 30 days of the issuance of any permit under this Section, the Director shall also

submit control technology information from the permit to the Administrator for the

purposes listed in Section 173(d) of the Act.

I. The issuance of a permit or permit revision under this Article in accordance with this

Section shall not relieve the owner or operator of the responsibility to comply fully with

applicable provisions of the SIP and any other requirements under local, state, or federal

law.

R18-2-404. Offset Standards

A. Increased emissions by a major source or major modification subject to R18-2-403 of

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each pollutant for which the area has been designated as nonattainment and for

which the source or modification is classified as major shall be offset by real

reductions in the actual emissions of each the pollutant for which the area has been

designated as nonattainment and for which the source or modification is classified

as major. Offsets shall be for the same regulated NSR Pollutant, except that

emissions of the ozone precursors NOx and VOC may be offset by reductions in

emissions of either of those pollutants, provided that all other applicable

requirements of this Section and R18-2-405 are satisfied. Except as provided in R18-

2-405, emissions increases shall be offset by decreases at a ratio of and subsection

(J), the ratio of the total actual reductions to the emissions increase shall be at least 1

to 1.

B. Except as provided in subsection (B)(1) or (2), for sources and modifications subject to

this Section, the baseline for determining credit for emissions reductions is the emissions

limit for the source generating the offset credit under the applicable implementation plan

in effect at the time the application for a permit or permit revision is filed.

1. The offset baseline shall be the actual emissions of the source from which offset

credit is obtained where either of the following conditions is satisfied:

a. The demonstration of reasonable further progress and attainment of

ambient air quality standards is based upon the actual emissions of

sources located within a designated nonattainment area for which the

preconstruction review program was adopted.

b. The applicable implementation plan does not contain an emissions

limitation for that source or source category.

2. Where the emissions limit under the applicable implementation plan allows

greater emissions than the potential to emit of the source, emissions offset credit

will be allowed only for control below this potential.

C. For an existing fuel combustion source, emissions offset credit shall be based on the

allowable emissions under the applicable implementation plan for the type of fuel being

burned at the time the application to construct is filed. If the existing source commits to

switch to a cleaner fuel at some future date, emissions offset credit based on the

allowable or actual emissions for the fuels involved is not acceptable, unless the permit

for the existing source is conditioned to require the use of a specified alternative control

measure which would achieve the same degree of emissions reduction should the source

switch back to a fuel generating higher emissions. The owner or operator of the existing

Commented [SB20]: Required by federal rule.

Commented [SB21]: Allowed by 2008 ozone NAAQS implementation rule.

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source must demonstrate that adequate long-term supplies of the new fuel are available

before granting emissions offset credit for fuel switches.

D. Offset Credit for Shutdowns.

1. Emissions reductions achieved by shutting down an existing emission unit or

curtailing production or operating hours may be credited for offsets if they meet

both of the following conditions.

a. The reductions are surplus, permanent, quantifiable, and federally

enforceable.

b. The shutdown or curtailment occurred after the last day of the base year

for the SIP planning process. For purposes of this subsection, the

Director may choose to consider a prior shutdown or curtailment to have

occurred after the last day of the base year if the projected emissions

inventory used to develop the attainment demonstration explicitly

includes the emissions from such previously shutdown or curtailed

emission units. However, in no event may credit be given for shutdowns

that occurred before August 7, 1977.

2. Emissions reductions achieved by shutting down an existing emissions unit or

curtailing production or operating hours and that do not meet the requirements in

subsection (D)(1)(b) may be credited only if one of the following conditions is

satisfied:

a. The shutdown or curtailment occurred on or after the date the

construction permit application is filed.

b. The applicant can establish that the proposed new emissions unit is a

replacement for the shutdown or curtailed emissions unit, and the

emissions reductions achieved by the shutdown or curtailment met the

requirements of subsection (D)(1)(a).

E. No emissions credit may be allowed for replacing one hydrocarbon compound with

another of lesser reactivity, except for those compounds listed in Table 1 of EPA’s

“Recommended Policy on Control of Volatile Organic Compounds,” 42 FR 35314 (July

8, 1977).

F. All emission reductions claimed as offset credits shall be federally enforceable by the

time a proposed final permit is issued to the owner or operator of the major source

subject to this Section and shall be in effect by the time the new or modified source

subject to the permit commences operation.

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G. The owner or operator of a major source or major modification subject to this Section

must obtain offset credits from the same source or from other sources in the same

nonattainment area, except that the Director may allow the owner or operator to obtain

offset credits from another nonattainment area if both of the following conditions are

satisfied:

1. The other area has an equal or higher nonattainment classification than the area

in which the source is located.

2. Emissions from such other area contribute to a violation of the national ambient

air quality standard in the nonattainment area in which the source is located.

H. Credit for an emissions reduction can be claimed to the extent that the Director has not

relied on it in issuing any permit under this Article, R18-2-334, or the state has not relied

on it in a demonstration of attainment or reasonable further progress.

I. The total tonnage of increased emissions, in tons per year, resulting from a major

modification that must be offset under this Section shall be determined by summing the

difference between the allowable emissions after the modification and the actual

emissions before the modification for each emissions unit.

J. In ozone nonattainment areas classified as marginal, total emissions of VOC and oxides

of nitrogen from other sources shall offset those proposed or permitted from the major

source or major modification by a ratio of at least 1.10 to 1. In ozone nonattainment areas

classified as moderate, total emissions of VOC and oxides of nitrogen from other sources

shall offset those proposed or permitted from the major source or major modification by a

ratio of at least 1.15 to 1. New major sources and major modifications in serious and

severe ozone nonattainment areas shall comply with this Section and R18-2-405.

R18-2-405. Special Rule for Major Sources of VOC or Nitrogen Oxides in Ozone

Nonattainment Areas Classified as Serious or Severe

A. Applicability. The provisions of this Section only apply to stationary sources of VOC or

nitrogen oxides in ozone nonattainment areas classified as serious or severe. Unless

otherwise provided in this Section, all requirements of Articles 3 and 4 of this Chapter

apply.

B. “Significant” means, for the purposes of a major modification of any major

stationary source of VOC or nitrogen oxides, or for determining whether an

otherwise minor source is major under the definition of major source in R18-2-401,

any physical change or change in the method of operations that results in net

increases in emissions of either pollutant by more than 25 tons when aggregated

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with all other creditable increases and decreases in emissions from the source over

the previous five consecutive calendar years, including the calendar year in which

the increase is proposed in reference to an emissions increase or a net emissions

increase, any increase in actual emissions of volatile organic compounds or nitrogen

oxides that would result from any physical change in, or change in the method of

operation of, a major source, if the emissions increase of volatile organic compounds

or nitrogen oxides exceeds 25 tons per year.

C. For any major source that emits or has the potential to emit less than 100 tons of VOC or

oxides of nitrogen per year, a physical or operational change that results in a significant

increase in VOC or oxides of nitrogen, respectively, from any discrete operation, unit, or

other pollutant emitting activity at the source shall constitute a major modification,

except that the increase shall not constitute a major modification, if the owner or operator

of the source elects to offset the increase by a greater reduction in emissions of VOC or

oxides of nitrogen, as applicable, from other operations, units or activities at the source at

an internal offset ratio of at least 1.3 to 1. If the owner or operator does not make such an

election, the change shall constitute a major modification but BACT shall be substituted

for LAER when applying R18-2-403(A)(1) to the major modification.

D. For any stationary source that emits or has the potential to emit 100 tons or more of VOC

or oxides of nitrogen per year, a physical or operational change that results in any

significant increase in VOC from any discrete operation, unit or other pollutant emitting

activity at the source or oxides of nitrogen, respectively, shall constitute a major

modification except that if the owner or operator of the source elects to offset the increase

by a greater reduction in emissions of VOC or oxides of nitrogen, as applicable, from

other operations, units or activities within the source at an internal offset ratio of at least

1.3 to 1, R18-2-403(A)(1) shall not apply to the change.

E. For any new major source or major modification that is classified as major because of

emissions or potential to emit VOC or nitrogen oxides in an ozone nonattainment area

classified as serious, the increase in emissions of these pollutants from the source or

modification shall be offset at a ratio of 1.2 to 1. The offset shall be made in accordance

with the provisions of R18-2-404.

F. For any new major source or major modification that is classified as such because of

emissions or potential to emit VOC or nitrogen oxides in an ozone nonattainment area

classified as severe, the increase in emissions of these pollutants from the source or

modification shall be offset at a ratio of 1.3 to 1. These offsets shall be made in

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accordance with the provisions of R18-2-404.

R18-2-406. Permit Requirements for Sources Located in Attainment and Unclassifiable

Areas

A. Except as provided in subsections (B) through (G) (J) below and R18-2-408 (Innovative

control technology), no permit or permit revision under this Article shall be issued to a

person proposing to construct a new major source or make a major modification to a

major source that would be constructed in an area designated as attainment or

unclassifiable for any regulated NSR pollutant unless the source or modification meets

the following conditions:

1. A new major source shall apply best available control technology (BACT) for

each regulated NSR pollutant for which the potential to emit is significant.

2. A major modification shall apply BACT for each regulated NSR pollutant for

which the project would result in a significant net emissions increase at the

source. This requirement applies to each proposed emissions unit at which a net

emissions increase in the pollutant would occur as a result of a physical change

or change in the method of operation in the unit.

3. For phased construction projects, the determination of BACT shall be reviewed

and modified as appropriate at the latest reasonable time which occurs no later

than 18 months prior to commencement of construction of each independent

phase of the project. At such time the owner or operator of the applicable

stationary source may be required to demonstrate the adequacy of any previous

determination of BACT for the source.

4. BACT shall be determined on a case-by-case basis and may constitute

application of production processes or available methods, systems, and

techniques, including fuel cleaning or treatment, clean fuels, or innovative fuel

combustion techniques, for control of such pollutant. In no event shall such

application of BACT result in emissions of any pollutant, which would exceed

the emissions allowed by any applicable new source performance standard or

national emission standard for hazardous air pollutants under Articles 9 and 11

of this Chapter or by the applicable implementation plan. If the Director

determines that technological or economic limitations on the application of

measurement methodology to a particular emissions unit would make the

imposition of an emissions standard infeasible, a design, equipment, work

practice, operational standard, or combination thereof may be prescribed instead

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to satisfy the requirement for the application of BACT. Such standard shall, to

the degree possible, set forth the emissions reduction achievable by

implementation of such design, equipment, work practice, or operation and shall

provide for compliance by means which achieve equivalent results.

5. The person applying for the permit or permit revision under this Article performs

an air impact analysis and monitoring as specified in R18-2-407, and such the

analysis demonstrates that allowable emission increases from the proposed new

major source or major modification, in conjunction with all other applicable

emission increases or reductions, including secondary emissions, for all

pollutants listed in R18-2-218(A), and including minor and mobile source

emissions of nitrogen oxides and PM10:

a. Would would not cause or contribute to concentrations of conventional

air pollutants in violation of:

a. any Any national ambient air quality standard in Article 2 of this

Chapter in any air quality control region; or

b. any Any applicable maximum allowable increase allowed under R18-2-

218 over the baseline concentration for in any attainment or

unclassified area; or.

b. Would not contribute to an increase in ambient concentrations for a

pollutant by an amount in excess of the significance level for such

pollutant in any adjacent area in which Arizona primary or

secondary ambient air quality standards for that pollutant are being

violated. A new major source of volatile organic compounds or

nitrogen oxides, or a major modification to a major source of volatile

organic compounds or nitrogen oxides shall be presumed to

contribute to violations of the Arizona ambient air quality standards

for ozone if it will be located within 50 kilometers of a nonattainment

area for ozone. The presumption may be rebutted for a new major

source or major modification if it can be satisfactorily demonstrated

to the Director that emissions of volatile organic compounds or

nitrogen oxides from the new major source or major modification

will not contribute to violations of the Arizona ambient air quality

standards for ozone in adjacent nonattainment areas for ozone. Such

a demonstration shall include a showing that topographical,

Commented [SB22]: This subsection formerly attempted to implement both the PSD air quality impact analysis requirements and the requirements of 51.165(b) for sources located in attainment areas that affect nonattainment areas. There were a number of problems with this that became apparent after we reviewed EPA’s comments and compared the federal rules to ours. For example, each of the federal rules has a different definition of major source. So we moved the 51.165(b) provisions to a new 411.

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meteorological, or other physical factors in the vicinity of the new

major source or major modification are such that transport of

volatile organic compounds emitted from the source are not expected

to contribute to violations of the ozone standards in the adjacent

nonattainment areas.

6. Air quality models:

a. All estimates of ambient concentrations required under this Section shall

be based on the applicable air quality models, data basis databases, and

other requirements specified in 40 CFR 51, Appendix W, “Guideline On

Air Quality Models,” as of July 1, 2011 July 1, 2015 (and no future

amendments or editions), which shall be referred to hereinafter as

“Guideline” and is adopted by reference and is on file with the

Department.

b. Where an air quality impact model specified in the “Guideline” is not

applicable, the model may be modified or another model substituted.

Such a change shall be subject to notice and opportunity for public

comment under R18-2-330. Written approval of the EPA Administrator

shall be obtained for any modification or substitution.

B. The requirements of this This Section and 18-2-407 shall not apply to a new major

source or major modification to a source with respect to a particular pollutant if the

person applying for the permit or permit revision under this Article demonstrates that, as

to that pollutant, the source or modification is located in an area designated as

nonattainment for the pollutant. This exemption shall not apply to an area designated

nonattainment for a revoked national ambient air quality standard in 40 CFR 81.

C. The requirements of this This Section, R18-2-407, and R18-2-410(B), (F), and (G)

shall not apply to a new major source or a major modification if such the source or

modification would be a major source or major modification only if fugitive emissions, to

the extent quantifiable, are considered in calculating the potential emissions of the source

or modification, and the source 1980 does not belong to a section 302(j) category.

D. The requirements of this This Section, R18-2-407, and R18-2-410(B), (F), and (G)

shall not apply to a new major source or major modification to a source when the owner

or operator of such the source is a nonprofit health or educational institution.

E. The requirements of this This Section, R18-2-407, and R18-2-410(B), (F) and (G)

shall not apply to a portable source which would otherwise be a new major source or

Page 126 of 153


major modification to an existing source if all of the following conditions are satisfied:

1. such The portable source will operate for no more than 24 months at its next

proposed location, .

2. The source is under subject to a permit or permit revision issued under this

Article, Section or 40 CFR 52.21.

3. The source is in compliance with the conditions of that permit or permit revision

under this Article, .

4. the emissions Emissions from the source will not impact a federal Class I area

nor an area where an applicable increment maximum increase allowed under

R18-2-218 is known to be violated, and.

5. reasonable Reasonable notice is given to the Director prior to the relocation

identifying the proposed new location and the probable duration of operation at

the new location. Such notice shall be given to the Director not less than at

least 10 calendar days in advance of the proposed relocation, unless a different

time duration is previously approved by the Director.

F. Subsection (A)(5), R18-2-407, and R18-2-410(B) shall not apply to a proposed major

source or major modification with respect to a particular pollutant, if the allowable

emissions of that pollutant from the source, or the net emissions increase of that

pollutant from the modification, would be temporary and impact no federal Class I

area and no area where a maximum increase allowed under R18-2-218 is known to

be violated.

G. Subsection (A)(5), R18-2-407, and R18-2-410(B) as they relate to any maximum

allowable increase for a Class II area shall not apply to a modification of a major

stationary source that was in existence on March 1, 1978, if the net increase in

allowable emissions of each regulated NSR pollutant from the modification after the

application of best available control technology would be less than 50 tons per year.

H. Subsection (A)(5)(b) shall not apply to a stationary source or modification with

respect to any maximum increase allowed for nitrogen oxides under R18-2-218 if the

owner or operator of the source or modification submitted an application for a

permit under the applicable permit program approved or promulgated under the

Act before the provisions embodying the maximum allowable increase took effect as

part of the state implementation plan and the Director subsequently determined

that the application as submitted before that date was complete.

I. Subsection (A)(5)(b) shall not apply to a stationary source or modification with

Commented [SB23]: Adding exemptions available under federal rules not previously included in ours.

Page 127 of 153


respect to any maximum increase allowed for PM10 under R18-2-218 if the owner or

operator of the source or modification submitted an application for a permit under

the applicable permit program approved under the Act before the provisions

embodying the maximum allowable increases for PM10 took effect as part of the

state implementation plan and the Director subsequently determined that the

application as submitted before that date was complete. Instead, subsection

(A)(5)(b) shall apply with respect to the maximum allowable increases for total

suspended particulate as in effect on the date the application was submitted.

J. Subsection (A)(5)(a) shall not apply to a stationary source or modification with

respect to the national ambient air quality standards for PM2.5 in effect on March

18, 2013 if either of the following is true:

1. The Director determined a permit application subject to this Section was

complete on or before December 14, 2012. Instead, subsection (A)(5)(a) shall

apply with respect to the national ambient air quality standards for PM2.5 in

effect at the time the Director determined the permit application to be

complete.

2. The Director first published before March 18, 2013 a public notice of a

proposed permit subject to this Section. Instead, subsection (A)(5)(a) shall

apply with respect to the national ambient air quality standards for PM2.5 in

effect at the time of first publication of the public notice.

K. The owner or operator of a proposed source or modification shall submit all

information necessary to perform any analysis or make a determination required

under this Section. The owner or operator shall also provide information

regarding:

1. The air quality impact of the source or modification, including

meteorological and topographical data necessary to estimate such impact,

and

2. The air quality impacts and the nature and extent of any or all general

commercial, residential, industrial, and other growth which has occurred

since August 7, 1977, in the area the source or modification would affect.

F. Special rules applicable to Federal Land Managers:

1. Notwithstanding any other provision of this Section, a Federal Land

Manager may present to the Director a demonstration that the emissions

attributed to such new major source or major modification to a source

Commented [SB24]: Moved to 410 to consolidate visibility requirements.

Page 128 of 153


would have an adverse impact on visibility or other specifically defined air

quality related values of any Federal Mandatory Class I area designated in

R18-2-217(B) regardless of the fact that the change in air quality resulting

from emissions attributable to such new major source or major modification

to a source in existence will not cause or contribute to concentrations which

exceed the maximum allowable increases for the area in R18-2-218. If the

Director concurs with such demonstrations, the permit or permit revision

under this Article shall be denied.

2. If the owner or operator of a proposed new major source or a source for

which major modification is proposed demonstrates to the Federal Land

Manager that the emissions attributable to such major source or major

modification will have no significant adverse impact on the visibility or other

specifically defined air quality-related values of such areas and the Federal

Land Manager so certifies to the Director, the Director may issue a permit

or permit revision under this Article, notwithstanding the fact that the

change in air quality resulting from emissions attributable to such new

major source or major modification will cause or contribute to

concentrations which exceed the maximum allowable increases for a Class I

area. Such a permit or permit revision under this Article shall require that

such new major source or major modification comply with such emission

limitations as may be necessary to assure that emissions will not cause

increases in ambient concentrations greater than the following maximum

allowable increases over baseline concentrations for such pollutants:

Pollutant

Maximum

allowable increase

(micrograms per cubic

meter)

PM2.5:

Annual arithmetic

mean

4

24-hr maximum 9

PM10:

Page 129 of 153


Annual arithmetic

mean

17

24-hr maximum 30

Sulfur dioxide:

Annual arithmetic

mean

20

24-hr maximum 91

3-hr maximum 325

Nitrogen dioxide

Annual arithmetic

mean

25

GL. The issuance of a permit or permit revision under this Article in accordance with this

Section shall not relieve the owner or operator of the responsibility to comply fully with

applicable provisions of the SIP and any other requirements under local, state, or federal

law.

HM. At such time that a particular source or modification becomes a major source or major

modification solely by virtue of a relaxation in any enforceable limitation which was

established after August 7, 1980, on the capacity of the source or modification otherwise

to emit a pollutant, such as a restriction on hours of operation, then the requirements of

this Section shall apply to the source or modification as though construction had not yet

commenced on the source or modification.

R18-2-407. Air Quality Impact Analysis and Monitoring Requirements

A. Any application for a permit or permit revision under this Article R18-2-406 to construct

a new major source or major modification to a major source shall contain an analysis of

ambient air quality in the area that the new major source or major modification would

affect for each of the following pollutants:

1. For the new source, each pollutant that it would have the potential to emit in a

significant amount;

2. For the modification, each pollutant for which it would result in a significant net

emissions increase.

B. With respect to any such pollutant for which no Arizona national ambient air quality

Page 130 of 153


standard exists, the analysis shall contain all air quality monitoring data as the Director

determines is necessary to assess ambient air quality for that pollutant in any area that the

emissions of the pollutant would affect.

C. With respect to any such pollutant (other than nonmethane hydrocarbons) for which such

a standard does exist, the analysis shall contain continuous air quality monitoring data

gathered for purposes of determining whether emissions of that pollutant would cause or

contribute to a violation of the standard or any maximum allowable increase.

D. In general, the continuous air quality monitoring data that is required shall have been

gathered over a period of at least one year and shall represent at least the year preceding

receipt of the application, except that, if the Director determines that a complete and

adequate analysis can be accomplished with monitoring data gathered over a period

shorter than one year (but not to be less than four months), the data that is required shall

have been gathered over at least that shorter period.

E. The owner or operator of a proposed stationary source or modification to a source of

volatile organic compounds who satisfies all conditions of 40 CFR 51, Appendix S,

Section IV, may provide post-approval monitoring data for ozone in lieu of providing

preconstruction data as required under subsections (B), (C), and (D) above.

F. Post-construction monitoring. The owner or operator of a new major source or major

modification shall, after construction of the source or modification, conduct such ambient

monitoring as the Director determines is necessary to determine the effect emissions from

the new source or modification may have, or are having, on air quality in any area.

G. Operations of monitoring stations. The owner or operator of a new major source or major

modification shall meet the requirements of 40 CFR 58, Appendix B, during the

operation of monitoring stations for purposes of satisfying subsections (B) through (F)

above.

H. The requirements of subsections (B) through (G) above shall not apply to a new major

source or major modification to an existing source with respect to monitoring for a

particular pollutant if:

1. The emissions increase of the pollutant from the new source or the net emissions

increase of the pollutant from the modification would cause, in any area, air

quality impacts less than the following amounts:

a. Carbon Monoxide - 575 µg/m3, eight-hour average;

b. Nitrogen dioxide - 14 µg/m3, annual average;

c. PM2.5 – 04 µg/m3, 24-hour average;

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d. PM10 - 10 µg/m3, 24-hour average;

e. Sulfur dioxide - 13 µg/m3, 24-hour average;

f. Lead - 0.1 µg/m3, 24-hour average 3-month average;

g. Fluorides - 0.25 µg/m3, 24-hour average;

h. Total reduced sulfur - 10 µg/m3, one-hour average;

i. Hydrogen sulfide - 0.04 µg/m3, one-hour average;

j. Reduced sulfur compounds - 10 µg/m3, one-hour average;

k. Ozone - increased emissions net emissions increases of less than 100

tons per year of volatile organic compounds or oxides of nitrogen; or

2. The concentrations of the pollutant in the area that the new source or

modification would affect are less than the concentrations listed in subsection

(H)(1) above.; or

3. The pollutant is not listed in subsection (H)(1).

I. Any application for permit or permit revision under this Article to construct a new

major source or major modification to a source shall contain:

1. An analysis of the impairment to visibility, soils, and vegetation that would

occur as a result of the new source or modification and general commercial,

residential, industrial, and other growth associated with the new source or

modification. The applicant need not provide an analysis of the impact on

vegetation having no significant commercial or recreational value.

2. An analysis of the air quality impact projected for the area as a result of

general commercial, residential, industrial, and other growth associated

with the new source or modification.

R18-2-408. Innovative Control Technology

A. Notwithstanding the provisions of R18-2-406(A)(1) through (3), the owner or operator of

a proposed new major source or major modification may request that the Director

approve a system of innovative control technology rather than the best available control

technology requirements otherwise applicable to the new source or modification.

B. The Director shall approve the installation of a system of innovative control technology if

the following conditions are met:

1. The owner or operator of the proposed source or modification satisfactorily

demonstrates that the proposed control system would not cause or contribute to

an unreasonable risk to public health, welfare, or safety in its operation or

function;

Commented [SB25]: Moved to 410

Page 132 of 153


2. The owner or operator agrees to achieve a level of continuous emissions

reduction equivalent to that which would have been required under R18-2-

406(A)(2) R18-2-406(A)(1) or (2) by a date specified in the permit or permit

revision under this Article for the source. Such date shall not be later than four

years from the time of start-up or seven years from the issuance of a permit or

permit revision under this Article;

3. The source or modification would meet requirements equivalent to those in R18-

2-406(A) based on the emissions rate that the stationary source employing the

system of innovative control technology would be required to meet on the date

specified in the permit or permit revision under this Article.

4. Before the date specified in the permit or permit revision under this Article, the

source or modification would not:

a. Cause or contribute to any violation of an applicable state national

ambient air quality standard; or

b. Impact any area where an applicable increment maximum increase

allowed under R18-2-208 is known to be violated.

5. All other applicable requirements including those for public participation have

been met.

6. The Director receives the consent of the governors of other affected states.

7. The limits on pollutants contained in R18-2-218 requirements of R18-2-410

for federal Class I areas will be met for all periods during the life of the source

or modification.

C. The Director shall withdraw any approval to employ a system of innovative control

technology made under this Section if:

1. The proposed system fails by the specified date to achieve the required

continuous emissions reduction rate; or

2. The proposed system fails before the specified date so as to contribute to an

unreasonable risk to public health, welfare, or safety; or

3. The Director decides at any time that the proposed system is unlikely to achieve

the required level of control or to protect the public health, welfare, or safety.

D. If the new source or major modification fails to meet the required level of continuous

emissions reduction within the specified time period, or if the approval is withdrawn in

accordance with subsection (C) above, the Director may allow the owner or operator of

the source or modification up to an additional three years to meet the requirement for the

Page 133 of 153


application of best available control technology through use of a demonstrated system of

control.

R18-2-409. Air Quality Models

A. Where the Director requires a person requesting a permit or permit revision under this

Article to perform air quality impact modeling to obtain such permit or permit revision

under this Article, the modeling shall be performed in a manner consistent with the

Guideline specified in R18-2-406(A)(6)(a).

B. Where the person requesting a permit or permit revision under this Article can

demonstrate that an air quality impact model specified in the Guideline is inappropriate,

the model may be modified or another model substituted. However, before such

modification or substitution can occur, the Director shall make a written finding that:

1. No model in the Guideline is appropriate for a particular permit or permit

revision under this Article under consideration, or

2. The data base required for the appropriate model in the Guideline is not

available, and

3. The model proposed as a substitute or modification is likely to produce results

equal or superior to those obtained by models in the Guideline, and

4. The model proposed as a substitute or modification has been approved by the

Administrator.

C. The substitution or modification of an air quality model under this Section shall be

included in the public notice under R18-2-330(C).

R18-2-410. Visibility and Air Quality Related Value Protection

A. For any new major source or major modification subject to the provisions of this

Chapter, no permit or permit revision under this Article shall be issued to a person

proposing to construct or modify the source unless the applicant has provided:

1. An analysis of the anticipated impacts of the proposed source on visibility in

any Class I areas which may be affected by the emissions from that source;

and

2. Results of monitoring of visibility in any area near the proposed source for

such purposes and by such means as the Director determines is necessary

and appropriate.

B. A determination of an adverse impact on visibility shall be made based on

consideration of all of the following factors:

1. The times of visitor use of the area;

Commented [SB26]: Section has been rewritten to make sure we fully comply with PSD and 51.307 requirements relating to visibility.

Page 134 of 153


2. The frequency and timing of natural conditions in the area that reduce

visibility;

3. All of the following visibility impairment characteristics:

a. Geographic extent,

b. Intensity,

c. Duration,

d. Frequency,

e. Time of day;

4. The correlation between the characteristics listed in subsection (B)(3) and

the factors described in subsections (B)(1) and (2).

C. The Director shall not issue a permit or permit revision pursuant to this Article or

Article 3 of this Chapter for any new major source or major modification subject to

this Chapter unless the following requirements have been met:

1. The Director shall notify the individuals identified in subsection (C)(2)

within 30 days of receipt of any advance notification of any such permit or

permit revision under this Article.

2. Within 30 days of receipt of an application for a permit or permit revision

under this Article for a source whose emissions may affect a Class I area, the

Director shall provide written notification of the application to the Federal

Land Manager and the federal official charged with direct responsibility for

management of any lands within any such area. The notice shall:

a. Include a copy of all information relevant to the permit or permit

revision under this Article,

b. Include an analysis of the anticipated impacts of the proposed source

on visibility in any area which may be affected by emissions from the

source, and

c. Provide for no less than a 30-day period within which written

comments may be submitted.

3. The Director shall consider any analysis provided by the Federal Land

Manager that is received within the comment period provided in subsection

(C)(2).

a. Where the Director finds that the analysis provided by the Federal

Land Manager does not demonstrate to the satisfaction of the

Director that an adverse impact on visibility will result in the area,

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the Director shall, within the public notice required under R18-2-

330, either explain the decision or specify where the explanation can

be obtained.

b. When the Director finds that the analysis provided by the Federal

Land Manager demonstrates to the satisfaction of the Director that

an adverse impact on visibility will result in the area, the Director

shall not issue a permit or permit revision under this Article for the

proposed major new source or major modification.

4. When the proposed permit decision is made, pursuant to R18-2-304(J), and

available for public review, the Director shall provide the individuals

identified in subsection (C)(2) with a copy of the proposed permit decision

and shall make available to them any materials used in making that

determination.

NOTE: The following is new rule language that uses automatic numbering and cross-references. It will be converted to the Secretary of State-approved format before the NPRM is submitted for publication.

A. Applicability.

1. All of the requirements of this Section apply to a new major source or major

modification that would be constructed in an area that is designated attainment or

unclassifiable.

2. Subsections B to D apply to the following:

a. A new major source or major modification that may have an impact on

any integral vista of a mandatory federal Class I area, if it is identified in

accordance with 40 CFR 51.304 by the Federal Land Manager at least

twelve months before submission of a complete permit application for

the source or modification, except where the Federal Land Manager has

provided notice and opportunity for public comment on the integral vista,

in which case the review must include impacts on any integral vista

identified at least six months before submission of a complete permit

application. This subsection shall not apply if the Director determines

under 40 CFR 51.304(d) that the identification was not in accordance

with the identification criteria.

b. A new major source or major modification that proposes to locate in an

area designated as nonattainment and that may have an impact on

visibility in any mandatory federal Class I area.

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B. Application Requirements. Any application for a permit or permit revision to construct a

major source or major modification shall contain:

1. An analysis of the impairment to visibility, soils, and vegetation that would occur

as a result of the new source or modification and general commercial, residential,

industrial, and other growth associated with the new source or modification. The

applicant need not provide an analysis of the impact on vegetation having no

significant commercial or recreational value.

2. An analysis of the air quality impact projected for the area as a result of general

commercial, residential, industrial, and other growth associated with the new


C. Notification Requirements.

1. The Director shall provide written notice of the application to the Administrator,

the Federal Land Manager and the federal official charged with direct

responsibility for management of any lands within any Class I area that may be

affected by the source or modification. The notice shall be provided within 30

days of receipt of the application and at least 60 days before any public hearing

on the application. The notice shall:

a. Include a copy of the application and all information relevant to the

permit or permit revision under this Article;

b. Include an analysis of the anticipated impacts of the proposed source on

visibility in any federal Class I area; and

c. Provide for no less than a 30-day period within which written comments

may be submitted.

2. The Director shall notify the individuals identified in subsection C.1 within 30

days of receipt of any advance notification of any such permit or permit revision.

3. The Director shall notify the individuals identified in subsection C.1 of the

preliminary determination for the application under R18-2-402(I)(2)(c) and shall

make available any materials used in making that determination.

D. Consideration of Federal Land Manager Analysis.

1. The Federal Land Manager and the federal official charged with direct

responsibility for management of federal Class I areas have an affirmative

responsibility to protect the air quality related values, including visibility, of any

such areas and to consider, in consultation with the Administrator, whether a

proposed source or modification would have an adverse impact on such values.

Page 137 of 153


2. The Director shall consider any analysis performed by the Federal Land Manager

and provided within 30 days of the notification required by subsection C.1 that

shows that a proposed new major stationary source or major modification may

have an adverse impact on visibility in a federal Class I area or integral vista.

3. In considering the analysis, the Director shall ensure that the source’s emissions

will be consistent with making reasonable progress toward the national visibility

goal referred to in 40 CFR 51.300(a), taking into account the costs of

compliance, the time necessary for compliance, the energy and nonair quality

environmental impacts of compliance, and the useful life of the source.

4. If the Director concurs with the analysis, the Director shall deny the permit or

permit revision.

5. If the Director finds that the analysis does not demonstrate to the satisfaction of

the Director that an adverse impact on visibility will result in the federal Class I

area or integral vista, the Director shall, in the notice required by R18-2-

402(I)(2)(c), either explain that decision or give notice as to where the

explanation can be obtained.

E. Federal Land Manager Analysis Showing Adverse Impact Despite Compliance with

Maximum Allowable Increases for Class I Area.

1. Within 30 days after the notification required by subsection C.3, the Federal

Land Manager may present to the Director a demonstration that the emissions

attributed to a new major source or major modification would have an adverse

impact on visibility or other specifically defined air quality related values of any

mandatory federal Class I area, even though the change in air quality resulting

from emissions attributable to the source or modification will not cause or

contribute to concentrations that exceed the maximum increases allowed for the

area in R18-2-218.

2. If the Director concurs with the demonstration, the Director shall not issue a

permit or permit revision for the major source or major modification.

F. Class I Variance with Federal Land Manager Concurrence.

1. The owner or operator of a proposed source or modification may demonstrate to

the Federal Land Manager that emissions from the source will have no adverse

impact on the air quality related values (including visibility) of federal Class I

areas, even though the change in air quality resulting from emissions from the

source or modification are projected to cause or contribute to concentrations that

Page 138 of 153


exceed the maximum increases allowed for a Class I area under R18-2-218.

2. If the Federal land manager concurs with the demonstration and so certifies to the

Director, the Director may issue the permit, provided that:

a. Applicable requirements are otherwise met; and

b. The permit contains emission limits necessary to assure that emissions of

sulfur dioxide, PM2.5, PM10, and nitrogen oxides will not cause increases

in ambient concentrations of those pollutants exceeding the following

maximum allowable increases over minor source baseline

concentrations:

Pollutant

Maximum allowable increase (micrograms per cubic meter)

PM2.5: Annual arithmetic

mean 4

24-hr maximum 9 PM10: Annual arithmetic

mean 17

24-hr maximum 30 Sulfur dioxide: Annual arithmetic

mean 20

24-hr maximum 91 3-hr maximum 325 Nitrogen dioxide Annual arithmetic

mean 25

G. Class I Sulfur Dioxide Variance by Governor with Concurrence by Federal Land

Manager or President.

1. The owner or operator of a proposed source or modification that cannot be

approved under subsection F may demonstrate to the Governor that the source

cannot be constructed by reason of any maximum allowable increase for sulfur

dioxide for a period of twenty-four hours or less applicable to any Class I area

and, in the case of mandatory federal Class I areas, that a variance under this

Page 139 of 153


clause would not adversely affect the air quality related values of the area

(including visibility). The Governor, after consideration of the Federal Land

Manager's recommendation (if any) and subject to his concurrence, may, after

notice and public hearing, grant a variance from the maximum allowable

increase. If the variance is granted, the Director shall issue a permit or permit to

the source or modification pursuant to the requirements of subsection G.3,

provided that the applicable requirements of R18-2-406 are otherwise met.

2. In any case where the Governor recommends a variance in which the Federal

Land Manager does not concur, the recommendations of the Governor and the

Federal Land Manager shall be transmitted to the President. The President may

approve the Governor's recommendation if the President finds that the variance is

in the national interest. If the variance is approved, the Director shall issue a

permit pursuant to subsection G.3, provided that the applicable requirements of

R18-2-406 are otherwise met.

3. In the case of a permit issued pursuant to subsection G.1 or G.2 the source or

modification shall comply with emission limitations necessary to assure that

emissions of sulfur dioxide from the source or modification will not (during any

day on which the otherwise applicable maximum allowable increases are

exceeded) cause or contribute to concentrations that would exceed the following

maximum allowable increases over the baseline concentration and to assure that

the emissions will not cause or contribute to concentrations that exceed the

otherwise applicable maximum allowable increases for periods of exposure of 24

hours or less for more than 18 days, not necessarily consecutive, during any

annual period:

Maximum Allowable Increase [Micrograms per cubic meter]

Period of exposure

Terrain areas

Low High 24-hr

maximum 36 62

3-hr maximum 130 221 H. Visibility Monitoring. The Director may require monitoring of visibility in any federal

Class I area near a proposed major source or major modification for such purposes and by

Page 140 of 153


such means as the Director deems necessary and appropriate.

R18-2-411. Permit Requirements for Sources that Locate in Attainment or

Unclassifiable Areas and Cause or Contribute to a Violation of Any National

Ambient Air Quality Standard.

A. Except as provided in subsection C or D, the Director shall deny a permit or permit

revision to any major source or major modification that would locate in any attainment or

unclassified area, if the source or modification would cause or contribute to a violation

of any national ambient air quality standard.

B. A major source or major modification will be considered to cause or contribute to a

violation of a national ambient air quality standard when the source or modification

would, at a minimum, cause an increase in the concentrations of a regulated NSR

pollutant that exceeds the significance level at any locality that does not, or as a result of

the increase would not, meet the standard.

C. A proposed major source or major modification subject to subsection A may reduce the

impact of its emissions upon air quality by obtaining sufficient emission reductions to, at

a minimum, compensate for its adverse ambient impact where the major source or major

modification would otherwise cause or contribute to a violation of any national ambient

air quality standard.

D. Subsection A shall not apply to a major stationary source or major modification with

respect to a particular pollutant if the owner or operator demonstrates that, as to that

pollutant, the source or modification is located in an area designated as nonattainment

pursuant to section 107 of the Act.

R18-2-412. PALs

A. Applicability.

1. The Director may approve the use of a PAL for any existing major source if the

PAL meets the requirements of this Section.

2. Any physical change in or change in the method of operation of a major

stationary source that maintains its total source-wide emissions below the PAL

level, meets the requirements of this Section, and complies with the PAL permit:

a. Is not a major modification for the PAL pollutant,

b. Does not have to be approved through the PSD program under R18-2-

403 or R18-2-406, and

c. Is not subject to the provisions in R18-2-403(C) or R18-2-406(H) R18-

2-406(M).

Commented [SB27]: Moved 51.165(b) requirements from 406.

Page 141 of 153


3. Except as provided under subsection (A)(2)(c), a major stationary source shall

continue to comply with all applicable federal or state requirements, emission

limitations, and work practice requirements that were established prior to the

effective date of the PAL.

B. Permit application requirements. As part of a permit application requesting a PAL, the

owner or operator of a major source shall submit the following information to the

Director for approval:

1. A list of all emissions units at the source designated as small, significant or major

based on their potential to emit. In addition, the owner or operator of the source

shall indicate which, if any, federal or state applicable requirements, emission

limitations, or work practices apply to each unit.

2. Calculations of the baseline actual emissions (with supporting documentation).

Baseline actual emissions shall include emissions associated not only with

operation of the unit, but also emissions associated with the startup,

shutdown and malfunction.

3. The calculation procedures that the major source owner or operator proposes to

use to convert the monitoring system data to monthly emissions and annual

emissions based on a 12-month rolling total for each month as required by

subsection (L)(1).

C. General requirements for establishing PALs.

1. The Director is allowed to establish a PAL at a major source, provided that at a

minimum, the following requirements are met:

a. The PAL shall impose an annual emission limitation in tons per year,

that is enforceable as a practical matter, for the entire major source. For

each month during the PAL effective period after the first 12 months of

establishing a PAL, the major source owner or operator shall show that

the sum of the monthly emissions from each emissions unit under the

PAL for the previous 12 consecutive months is less than the PAL (a 12-

month sum, rolled monthly). For each month during the first 11 months

from the PAL effective date, the major source owner or operator shall

show that the sum of the preceding monthly emissions from the PAL

effective date for each emissions unit under the PAL is less than the

PAL.

b. The PAL shall be established in a PAL permit that meets the

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requirements in subsection (D).

c. The PAL permit shall contain all the requirements of subsection (F).

d. The PAL shall include fugitive emissions, to the extent quantifiable,

from all emissions units that emit or have the potential to emit the PAL

pollutant at the major source.

e. Each PAL shall regulate emissions of only one pollutant.

f. Each PAL shall have a PAL effective period of 10 years.

g. The owner or operator of the major source with a PAL shall comply with

the monitoring, recordkeeping, and reporting requirements provided in

subsections (K) through (M) for each emissions unit under the PAL

through the PAL effective period.

2. At no time (during or after the PAL effective period) are emissions reductions of

a PAL pollutant that occur during the PAL effective period creditable as

decreases for purposes of offsets under R18-2-404 unless the level of the PAL is

reduced by the amount of such emissions reductions and such reductions would

be creditable in the absence of the PAL.

D. Action on PAL permit application. A PAL permit application shall be processed in

accordance with one of the following:

1. As an initial Class I permit pursuant to R18-2-304.

2. As a renewal of a Class I permit pursuant to R18-2-322.

3. As a significant revision to a Class I permit pursuant to R18-2-320.

E. Setting the 10-year actuals PAL level.

1. Except as provided in subsection (E)(2), the PAL level for a major source shall

be established as the sum of the baseline actual emissions of the PAL pollutant

for each emissions unit at the source; plus an amount equal to the applicable

significant level for the PAL pollutant. When establishing the PAL level, only

one consecutive 24-month period must be used to determine the baseline actual

emissions for all existing emissions units. However, a different consecutive 24-

month period may be used for each different PAL pollutant. Emissions associated

with units that were permanently shut down after this 24-month period must be

subtracted from the PAL level. The Director shall specify a reduced PAL level(s)

(in tons/yr) in the PAL permit to become effective on the future compliance

date(s) of any applicable federal or state regulatory requirement(s) that the

Director is aware of prior to issuance of the PAL permit. For instance, if the

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source owner or operator will be required to reduce emissions from industrial

boilers in half from baseline emissions of 60 ppm NOX to a new rule limit of 30

ppm, then the permit shall contain a future effective PAL level that is equal to the

current PAL level reduced by half of the original baseline emissions of such

unit(s).

2. For newly constructed units (which do not include modifications to existing

units) on which actual construction began after the 24-month period, in lieu of

adding the baseline actual emissions as specified in subsection (E)(1), the

emissions must be added to the PAL level in an amount equal to the potential to

emit of the units.

F. Contents of the PAL permit. The PAL permit must contain, at a minimum, the following

information:

1. The PAL pollutant and the applicable source-wide emission limitation in tons per

year.

2. The PAL permit effective date and the expiration date of the PAL (PAL effective

period).

3. Specification in the PAL permit that if a major source owner or operator applies

to renew a PAL in accordance with subsection (I) before the end of the PAL

effective period, then the PAL shall not expire at the end of the PAL effective

period. It shall remain in effect until a revised PAL permit is issued by the

Director.

4. A requirement that emission calculations for compliance purposes must include

emissions from startups, shutdowns, and malfunctions.

5. A requirement that, once the PAL expires, the major source is subject to the

requirements of subsection (H).

6. The calculation procedures that the major source owner or operator shall use to

convert the monitoring system data to monthly emissions and annual emissions

based on a 12-month rolling total as required by subsection (L)(1).

7. A requirement that the major source owner or operator monitor all emissions

units in accordance with the provisions under subsection (K).

8. A requirement to retain the records required under subsection (L) onsite. Such

records may be retained in an electronic format.

9. A requirement to submit the reports required under subsection (M) by the

required deadlines.

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10. Any other requirements that the Director deems necessary to implement and

enforce the PAL.

G. PAL effective period and reopening of the PAL permit.

1. PAL effective period. The Director shall specify a PAL effective period of 10

years.

2. Reopening of the PAL permit.

a. During the PAL effective period, the Director must reopen the PAL

permit to:

i. Correct typographical/calculation errors made in setting the PAL

or reflect a more accurate determination of emissions used to

establish the PAL,

ii. Reduce the PAL if the owner or operator of the major source

creates creditable emissions reductions for use as offsets under

R18-2-404, and

iii. Revise the PAL to reflect an increase in the PAL as provided

under subsection (J).

b. The Director shall have discretion to reopen the PAL permit for the

following:

i. Reduce the PAL to reflect new federal applicable requirements

with compliance dates after the PAL effective date;

ii. Reduce the PAL consistent with any other requirement, that is

enforceable as a practical matter, and that the state may impose

on the major source under the State Implementation Plan; and

iii. Reduce the PAL if the Director determines that a reduction is

necessary to avoid causing or contributing to a NAAQS or PSD

increment violation of a national ambient air quality

standard or a maximum increase allowed under R18-2-208,

or to an adverse impact on an air quality related value that has

been identified for a Federal federal Class I area by a Federal

Land Manager and for which information is available to the

general public.

c. Except for the permit reopening in subsection (G)(2)(a)(i) for the

correction of typographical/calculation errors that do not increase the

PAL level, all other reopenings shall be carried out in accordance with

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the public participation requirements of subsection (D).

H. Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in

subsection (I) shall expire at the end of the PAL effective period, and the following

requirements shall apply.

1. Each emissions unit (or each group of emissions units) that existed under the

PAL shall comply with an allowable emission limitation under a revised permit

established according to the following procedures.

a. Within the time-frame specified for PAL renewals in subsection (I)(2),

the major source shall submit a proposed allowable emission limitation

for each emissions unit (or each group of emissions units, if such a

distribution is more appropriate) by distributing the PAL allowable

emissions for the major source among each of the emissions units that

existed under the PAL. If the PAL had not yet been adjusted for an

applicable requirement that became effective during the PAL effective

period, as would be required under subsection (I)(5), such distribution

shall be made as if the PAL had been adjusted.

b. The Director shall decide how the PAL allowable emissions will be

distributed and issue a revised permit incorporating allowable limits for

each emissions unit, or each group of emissions units, as the Director

determines is appropriate.

2. Each emissions unit(s) shall comply with the allowable emission limitation on a

12-month rolling basis. The Director may approve the use of monitoring systems

(source testing, emission factors, etc.) other than CEMS, CERMS, PEMS, or

CPMS to demonstrate compliance with the allowable emission limitation.

3. Until the Director issues the revised permit incorporating allowable limits for

each emissions unit, or each group of emissions units, as required under

subsection (H)(1)(b), the source shall continue to comply with a source-wide,

multi-unit emissions cap equivalent to the level of the PAL emission limitation.

4. Any physical change or change in the method of operation at the major source

will be subject to the applicability criteria set forth at subsection (C) the

nonattainment major NSR requirements if such change meets the definition

of major modification.

5. The major source owner or operator shall continue to comply with any applicable

requirements that may have applied either during the PAL effective period or

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before the PAL effective period except for those emission limitations that

had been established pursuant to R18-2-403(C) or R18-2-406(H), but were

eliminated by the PAL in accordance with subsection (A)(2)(c). Emission

limitations that were eliminated by the PAL in accordance with subsection

(A)(2)(c) shall not be reinstated.

I. Renewal of a PAL.

1. The Director shall follow the procedures specified in subsection (F) (D) in

approving any request to renew a PAL for a major source, and shall provide both

the proposed PAL level and a written rationale for the proposed PAL level to the

public for review and comment. During such public review, any person may

propose a PAL level for the source for consideration by the Director.

2. Application deadline. A major source owner or operator shall submit a timely

application to the Director to request renewal of a PAL. A timely application is

one that is submitted at least six months prior to, but not earlier than 18 months

from, the date of permit expiration. This deadline for application submittal is to

ensure that the permit will not expire before the permit is renewed. If the owner

or operator of a major source submits a complete application to renew the PAL

within this time period, then the PAL shall continue to be effective until the

revised permit with the renewed PAL is issued.

3. Application requirements. The application to renew a PAL permit shall contain

the following information.

a. The information required in subsections (B)(1) through (3).

b. A proposed PAL level.

c. The sum of the potential to emit of all emissions units under the PAL

(with supporting documentation).

d. Any other information the owner or operator wishes the Director to

consider in determining the appropriate level for renewing the PAL.

4. PAL adjustment. In determining whether and how to adjust the PAL, the Director

shall consider the options outlined in subsections (I)(4)(a) and (b). However, in

no case may any such adjustment fail to comply with subsection (I)(4)(c).

a. If the emissions level calculated in accordance with subsection (F)(E) is

equal to or greater than 80% of the PAL level, the Director may renew

the PAL at the same level without considering the factors set forth in

subsection (I)(4)(b); or

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b. The Director may set the PAL at a level that the Director determines to

be more representative of the source’s baseline actual emissions, or that

the Director determines to be more appropriate considering air quality

needs, advances in control technology, anticipated economic growth in

the area, desire to reward or encourage the source’s voluntary emissions

reductions, or other factors as specifically identified by the Director in

the Director’s written rationale.

c. Notwithstanding subsections (I)(4)(a) and (b):

i. If the potential to emit of the major source is less than the PAL,

the Director shall adjust the PAL to a level no greater than the

potential to emit of the source; and

ii. The Director shall not approve a renewed PAL level higher than

the current PAL, unless the PAL has been increased in

accordance with subsection (J).

5. If the compliance date for an applicable requirement that applies to the PAL

source occurs during the PAL effective period, and if the Director has not already

adjusted for such requirement, the PAL shall be adjusted at the time of PAL

permit renewal or renewal of the source’s Class I permit, whichever occurs first.

J. Increasing a PAL during the PAL effective period.

1. The Director may increase a PAL emission limitation only if the following

requirements are met:

a. The owner or operator of the major source shall submit a complete

application to request an increase in the PAL limit for a PAL major

modification. Such application shall identify the emissions unit(s)

contributing to the increase in emissions so as to cause the major

source’s emissions to equal or exceed its PAL.

b. As part of this application, the major source owner or operator shall

demonstrate that the sum of the baseline actual emissions of the small

emissions units, plus the sum of the baseline actual emissions of the

significant and major emissions units assuming application of BACT or

LAER equivalent controls, plus the sum of the PAL allowable emissions

of the new or modified emissions unit(s) exceeds the PAL. The level of

control that would result from BACT or LAER equivalent controls on

each significant or major emissions unit shall be determined by

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conducting a new BACT or LAER analysis at the time the application is

submitted, as applicable for the particular PAL pollutant, unless the

emissions unit is currently required to comply with a BACT or LAER

requirement that was established within the preceding 10 years. In such a

case, the assumed control level for that emissions unit shall be equal to

the level of BACT or LAER with which that emissions unit must

currently comply.

c. The owner or operator obtains a major NSR permit for all emissions

unit(s) identified in subsection (J)(1)(a), regardless of the magnitude of

the emissions increase resulting from them (that is, no significant levels

apply). These emissions unit(s) shall comply with any emissions

requirements resulting from the major NSR process (for example,

BACT), even though they have also become subject to the PAL or

continue to be subject to the PAL.

d. The PAL permit shall require that the increased PAL level shall be

effective on the day any emissions unit that is part of the PAL major

modification becomes operational and begins to emit the PAL pollutant.

2. The Director shall calculate the new PAL level as the sum of the PAL allowable

emissions for each modified or new emissions unit, plus the sum of the baseline

actual emissions of the significant and major emissions units (assuming

application of BACT or LAER equivalent controls as determined in accordance

with subsection (J)(1)(b), plus the sum of the baseline actual emissions of the

small emissions units.

3. The PAL permit shall be revised to reflect the increased PAL level pursuant to

the public notice requirements of subsection (D).

K. Monitoring requirements for PALs.

1. General requirements.

a. Each PAL permit must contain enforceable requirements for the

monitoring system that accurately determines plantwide emissions of the

PAL pollutant in terms of mass per unit of time. Any monitoring system

authorized for use in the PAL permit must be based on sound science and

meet generally acceptable scientific procedures for data quality and

manipulation. Additionally, the information generated by such system

must meet minimum legal requirements for admissibility in a judicial

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proceeding to enforce the PAL permit.

b. The PAL monitoring system must employ one or more of the four

general monitoring approaches meeting the minimum requirements set

forth in subsections (K)(2)(a) through (d) and must be approved by the

Director.

c. Notwithstanding subsection (K)(1)(b), the owner or operator may also

employ an alternative monitoring approach if approved by the Director

as meeting the requirements of subsection (K)(1)(a).

d. Failure to use a monitoring system that meets the requirements of this

Section renders the PAL invalid.

2. Minimum performance requirements for approved monitoring approaches. The

following are acceptable general monitoring approaches when conducted in

accordance with the minimum requirements in subsections (K)(3) through (9):

a. Mass balance calculations for activities using coatings or solvents,

b. CEMS,

c. CPMS or PEMS, and

d. Emission factors.

3. Mass balance calculations. An owner or operator using mass balance calculations

to monitor PAL pollutant emissions from activities using coating or solvents

shall meet the following requirements:

a. Provide a demonstrated means of validating the published content of the

PAL pollutant that is contained in or created by all materials used in or at

the emissions unit;

b. Assume that the emissions unit emits all of the PAL pollutant that is

contained in or created by any raw material or fuel used in or at the

emissions unit, if it cannot otherwise be accounted for in the process; and

c. Where the vendor of a material or fuel, which is used in or at the

emissions unit, publishes a range of pollutant content from such material,

the owner or operator must use the highest value of the range to calculate

the PAL pollutant emissions unless the Director determines there is site-

specific data or a site-specific monitoring program to support another

content within the range.

4. CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions

shall meet the following requirements:

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a. CEMS must comply with applicable Performance Specifications found in

40 CFR 60, Appendix B; and

b. CEMS must sample, analyze and record data at least every 15 minutes

while the emissions unit is operating.

5. CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL

pollutant emissions shall meet the following requirements:

a. The CPMS or the PEMS must be based on current site-specific data

demonstrating a correlation between the monitored parameter(s) and the

PAL pollutant emissions across the range of operation of the emissions

unit; and

b. Each CPMS or PEMS must sample, analyze, and record data at least

every 15 minutes, or at another less frequent interval approved by the

Director, while the emissions unit is operating.

6. Emission factors. An owner or operator using emission factors to monitor PAL

pollutant emissions shall meet the following requirements:

a. All emission factors shall be adjusted, if appropriate, to account for the

degree of uncertainty or limitations in the factors’ development;

b. The emissions unit shall operate within the designated range of use for

the emission factor, if applicable; and

c. If technically practicable, the owner or operator of a significant

emissions unit that relies on an emission factor to calculate PAL

pollutant emissions shall conduct validation testing to determine a site-

specific emission factor within six months of PAL permit issuance,

unless the Director determines that testing is not required.

7. A source owner or operator must record and report maximum potential emissions

without considering enforceable emission limitations or operational restrictions

for an emissions unit during any period of time that there is no monitoring data,

unless another method for determining emissions during such periods is specified

in the PAL permit.

8. Notwithstanding the requirements in subsections (K)(3) through (7), where an

owner or operator of an emissions unit cannot demonstrate a correlation between

the monitored parameter(s) and the PAL pollutant emissions rate at all operating

points of the emissions unit, the Director shall, at the time of permit issuance:

a. Establish default value(s) for determining compliance with the PAL

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based on the highest potential emissions reasonably estimated at such

operating point(s), or

b. Determine that operation of the emissions unit during operating

conditions when there is no correlation between monitored parameter(s)

and the PAL pollutant emissions is a violation of the PAL.

9. Re-validation. All data used to establish the PAL pollutant must be re-validated

through performance testing or other scientifically valid means approved by the

Director. Such testing must occur at least once every five years after issuance of

the PAL.

L. Recordkeeping requirements.

1. The PAL permit shall require an owner or operator to retain a copy of all records

necessary to determine compliance with any requirement of this Section and with

the PAL, including a determination of each emissions unit’s 12-month rolling

total emissions, for five years from the date of such record.

2. The PAL permit shall require an owner or operator to retain a copy of the

following records for the duration of the PAL effective period plus five years:

a. A copy of the PAL permit application and any applications for revisions

to the PAL, and

b. Each annual certification of compliance pursuant to R18-2-309(2) and

the data relied on in certifying compliance.

M. Reporting and notification requirements. The owner or operator shall submit semi-annual

monitoring reports and prompt deviation reports to the Director in accordance with R18-

2-306(A)(5). The reports shall meet the following requirements:

1. Semi-annual report. The semi-annual report shall be submitted to the Director

within 30 days of the end of each reporting period. This report shall contain the

following information:

a. The identification of owner and operator and the permit number.

b. Total annual emissions (tons/year) based on a 12-month rolling total for

each month in the reporting period recorded pursuant to subsection

(L)(1).

c. All data relied upon, including, but not limited to, any Quality Assurance

or Quality Control data, in calculating the monthly and annual PAL

pollutant emissions.

d. A list of any emissions units modified or added to the major source

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during the preceding six-month period.

e. The number, duration, and cause of any deviations or monitoring

malfunctions (other than the time associated with zero and span

calibration checks), and any corrective action taken.

f. A notification of a shutdown of any monitoring system, whether the

shutdown was permanent or temporary, the reason for the shutdown, the

anticipated date that the monitoring system will be fully operational or

replaced with another monitoring system, and whether the emissions unit

monitored by the monitoring system continued to operate, and the

calculation of the emissions of the pollutant or the number determined by

method included in the permit, as provided by subsection (K)(7).

g. A certification by the responsible official consistent with R18-2-304(H).

2. Deviation report. The major source owner or operator shall promptly submit

reports of any deviations or exceedance of the PAL permit requirements,

including periods where no monitoring is available, in accordance with R18-2-

306(A)(5). The reports shall contain the following information:

a. The identification of owner and operator and the permit number,

b. The PAL permit requirement that experienced the deviation or that was

exceeded,

c. Emissions resulting from the deviation or the exceedance, and

d. A certification by the responsible official consistent with R18-2-304(H).

3. Re-validation results. The owner or operator shall submit to the Director the

results of any re-validation test or method within three months after completion

of such test or method.

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TITLE 18. ENVIRONMENTAL QUALITY CHAPTER 2. …